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In Japan's changing regulatory and financial landscape, the focus on distressed assets (including non-performing and sub-performing assets)have never been greater. Recapitalization/reorganization of assets is becoming an urgent and crucial issue for Japanese financial institutions. Almost one year has passed since the enforcement of the Civil Rehabilitation Law (CRL) and nearly 700 companies have applied for the CRL procedure. As such, the examples of its implementation have been broadened and controversial issues such as Kashi-Tanpo Tokuyaku (Defect Pledging Clause) have come up. Can CRL be a driving force for the reorganization of distressed companies? As a countermeasure for markets invigoration, new schemes such as treasury stock, ESOP etc. are being examined by the administration. Will these new schemes be just another counter-stock-price measure or can it really help revive the Japanese economy by increased recapitalization and securitization of assets? These questions will be a few of the hotly debated issues at the 2nd Annual Distressed Assets Forum.