Changes to business regulations and special tax breaks will be considered to help ailing companies avoid bankruptcy and get back on their feet, according to government draft guidelines released Tuesday.
According to the draft, prepared by the Ministry of Economy, Trade and Industry, issues to be looked at include tax breaks for mergers and acquisitions and corporate revival funds. Also proposed is the relaxation of market listing rules so that filing for corporate rehabilitation would not mandate that a firm be delisted.
The guidelines, which are to be formally released Thursday, outline steps that both the public and private sector can take to create a framework for salvaging companies more quickly. There have been many recent cases in which firms have had to be liquidated because they waited too long to file for corporate rehabilitation.