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The treatment of executory contracts and ipso facto clauses is a controversial issue in contemporary debates about Japanese insolvency law. Wide-sweeping procedural and legislative reforms undertaken between 1996 and 2005 focused on fundamental structural and procedural problems which had built up over decades and were ripe for review after the collapse of the bubble economy in the early 1990s. Whilst the reforms addressed aspects of the treatment of executory contracts, the reforms did not significantly develop the statutory law in relation to ipso facto clauses. This chapter provides a summary of the current state of play in Japan in relation to executory contracts and ipso facto clauses.

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