Reluctance to pay and especially inability to pay nowadays face more and more companies engaged in trade and transport, and also other sectors.
Corporate debt restructuring is used for assessing the situation of an enterprise on the brink of bankruptcy in an objective manner, free from secondary effects. In this case, the administrator of the restructuring process examines whether the enterprise can still be rehabilitated – and whether it thus has the proper conditions for continuing its operations through rehabilitation – in many cases by cutting its debts.
If a corporate debt restructuring or a voluntary debt restructuring by way of agreement is launched at a sufficiently early stage, it may be possible to save the enterprise that has ended up in temporary difficulties. Restructuring can also be used to make a radical change of direction in the company, to undertake the required rehabilitation measures and to terminate unprofitable contracts regardless of the normal period of notice.
However, if the company has drifted to such a state of insolvency that even the debt restructuring does not produce the desired outcome or if there are not otherwise grounds for it, our firm can take care of the company’s debt settlement in the event of bankruptcy. In many cases, when the corporate debt restructuring is being contemplated, it is noticed that bankruptcy is a more sensible option, but the matter should still be examined very carefully first. We have been involved in numerous bankruptcy cases as the estate administrator and public receiver and in corporate debt restructuring processes as the administrator and later as the supervisor.
In a case of insolvency and bankruptcy, co-operation especially with the major creditors is of utmost importance, regardless of one’s own role.