An article titled “Taking Effect in May 2026! Commentary on the Act on the Promotion of Cash Flow-Based Lending and ‘Enterprise Value Charge,’” written by Tetsuya Ishida, was published on BUSINESS LAWYERS.
Taking Effect in May 2026! Commentary on the Act on the Promotion of Cash Flow-Based Lending and “Enterprise Value Charge” – BUSINESS LAWYERS
1. Overview of the Act on the Promotion of Cash Flow-Based Lending
1-1. Background, History, and Purpose of the New Act
1-2. Timing of Enforcement
2. Main Items and Impact on Companies
2-1. Overview
2-2. Impact
3. What is Enterprise Value Charge?
3-1. Basic Structure of Enterprise Value Charge
3-2. Borrower/Settlor (Entrustor)
3-3. Security Interest Holder (Trustee)
3-4. Secured Creditor (Beneficiary) and the Scope of Secured Claims
3-5. Procedures for the Enforcement of Enterprise Value Charge
4. Practical Considerations
4-1. Methods for Loan Evaluation and Provisioning by Financial Institutions
4-2. Protection of Workers
4-3. Relationship with Bankruptcy Proceedings
4-4. Establishment of Covenants, Interim Monitoring, etc.
5. Key Points of Responses by Financial Institutions, Enterprise Value Charge Trust Companies, and Borrowers
