It is advisable to initiate the company restructuring process when insolvency threatens the company, thus maximizing its chances of success. Even when a creditor seeks bankruptcy, a company restructuring application can be submitted to obtain protection against bankruptcy.

Based on our experience, the success of company restructuring is better when the application is made earlier. We recommend reaching out when insolvency threatens the company, giving more time to react.

The initiation of company restructuring requires insolvency or the threat of insolvency and the potential for the company’s viability through restructuring measures. Attorney Sotka has experience in numerous restructuring proceedings, including drafting applications, developing restructuring plans, and representing clients in court.

Bankruptcies and Recovery to the Bankruptcy Estate

A company can be declared bankrupt if it cannot meet its debts, requiring evidence of the company’s insolvency. Bankruptcy can be initiated either voluntarily by the company or at the demand of a creditor. Voluntary bankruptcy following a self-application may be appropriate if bankruptcy is otherwise foreseeable.

We assist in disputes and criminal cases related to bankruptcies and in recovery to the bankruptcy estate cases. Recovery to the bankruptcy estate involves reclaiming payments or other transactions made by a company that has gone bankrupt to a creditor or other third party before the company’s bankruptcy. The purpose of recovery is to prevent a financially distressed debtor from transferring its assets beyond the reach of creditors or favoring one creditor at the expense of others.

In situations where the company’s accounting has been neglected before bankruptcy or the company’s assets have been transferred to ‘safety’, paying the debts of one creditor and leaving others unpaid, these are usually issues that constitute statutory definition of accounting, tax, and/or debtor dishonesty crimes. We have experience in bankruptcy related processes in recovery and criminal cases.

Company restructuring and insolvency

Our attorneys assess the needs and conditions of our clients facing threatening or imminent insolvency. Subsequently, we propose a course of action and recommend a procedure to either restore the viability of the business or facilitate a controlled cessation.

In the recovery process, voluntary procedures are usually considered, where agreements are made with creditors regarding debt restructuring and asset sales, or statutory company restructuring.

Company restructuring

The goal of company restructuring is to revive the business. In company restructuring, the company’s operations and debts are reorganized, unprofitable business is sold or closed, and operations are focused to a profitable business. The District Court approves the restructuring plan, typically involving a reduction in debts and the formulation of a new payment plan for remaining debts. If the company adheres to the restructuring plan, it is relieved of the reduced debts.

Company restructuring can save a viable company facing financial difficulties. It provides protection against bankruptcy and is often the last resort to avoid it.

It is advisable to initiate the company restructuring process when insolvency threatens the company, thus maximizing its chances of success. Even when a creditor seeks bankruptcy, a company restructuring application can be submitted to obtain protection against bankruptcy.

Based on our experience, the success of company restructuring is better when the application is made earlier. We recommend reaching out when insolvency threatens the company, giving more time to react.

The initiation of company restructuring requires insolvency or the threat of insolvency and the potential for the company’s viability through restructuring measures. Attorney Sotka has experience in numerous restructuring proceedings, including drafting applications, developing restructuring plans, and representing clients in court.

Bankruptcies and Recovery to the Bankruptcy Estate

A company can be declared bankrupt if it cannot meet its debts, requiring evidence of the company’s insolvency. Bankruptcy can be initiated either voluntarily by the company or at the demand of a creditor. Voluntary bankruptcy following a self-application may be appropriate if bankruptcy is otherwise foreseeable.

We assist in disputes and criminal cases related to bankruptcies and in recovery to the bankruptcy estate cases. Recovery to the bankruptcy estate involves reclaiming payments or other transactions made by a company that has gone bankrupt to a creditor or other third party before the company’s bankruptcy. The purpose of recovery is to prevent a financially distressed debtor from transferring its assets beyond the reach of creditors or favoring one creditor at the expense of others.

In situations where the company’s accounting has been neglected before bankruptcy or the company’s assets have been transferred to ‘safety’, paying the debts of one creditor and leaving others unpaid, these are usually issues that constitute statutory definition of accounting, tax, and/or debtor dishonesty crimes. We have experience in bankruptcy related processes in recovery and criminal cases.