Restructuring vs. Bankruptcy
Bankruptcy = liquidation. Restructuring = saving the business while satisfying creditors. The Restructuring Law of 2015 (effective from 1 January 2016) gives four paths.
Four Restructuring Procedures
1. Arrangement approval proceedings — fastest, debtor collects votes. 2. Accelerated arrangement proceedings — undisputed claims, enforcement protection, 2-3 months. 3. Arrangement proceedings — disputed claims, full protection. 4. Remedial proceedings — most far-reaching, administrator takes over.
When There's Still Time
When the company is at risk of insolvency but there's a realistic chance of saving the business. If hopeless — bankruptcy is mandatory (30 days).
Enforcement Protection
Opening proceedings suspends enforcement. Provides space for creditor negotiations.
Arrangement with Creditors
Deferred payments, installments, partial claim reduction (haircut), debt-to-equity conversion. A court-approved arrangement binds all creditors.
Facing financial difficulties? Get in touch — I'll assess whether restructuring is still viable.