1. The Client's Situation
The client had concluded a special-agency goods supply agreement with a particular retailer and was supplying goods, when it received notice that the retailer had filed an application to commence simplified rehabilitation proceedings and that a comprehensive prohibition order had been issued. With the payment for the supplied goods not yet fully made, and given that recovery of the goods could become difficult due to the legal restrictions arising from the rehabilitation proceedings, prompt legal review and response were required.
2. Your Legal Team's Advice
Your Legal Team precisely analyzed the provisions of the contract and confirmed that the contract strongly bore the character of a "sale with retention of ownership." On this basis, we explained that, even in simplified rehabilitation proceedings, the exercise of the right of repossession (the right to recover the goods) is possible under certain conditions, and we presented three strategies for recovery. First, a method of asserting in the rehabilitation proceedings that the contract had the character of a consignment sale and requesting the administrator and the court to allow the exercise of the right of repossession; second, a method of negotiating to have the return of the goods reflected in the rehabilitation plan; and third, a method of recovering the money through a guarantee-insurance certificate, all of which we guided in parallel.
3. Result
With Your Legal Team's assistance, the client secured multiple response options and thus came to occupy a strategic position from which it could respond flexibly to circumstances both before and after the court's decision. In particular, the possibility of recovery through guarantee insurance was secured, providing a substantial benefit in terms of asset protection and the minimization of losses.