Protective settlement and financial reorganisation
Introduction
Using the Bankruptcy Law's procedures to restructure a viable business under the court's supervision, with protection from creditor action.
The Bankruptcy Law, in force since 2018, offers two procedures for businesses that can be saved. In protective settlement, the debtor keeps managing the business and negotiates a settlement with its creditors under the court's supervision. In financial reorganisation, a bankruptcy trustee supervises while a plan is prepared and put to creditors.
Both procedures can suspend claims against the debtor while the proposal is prepared, and an approved plan binds creditors who voted against it. That makes them powerful tools, but demanding ones: the plan must be realistic, the creditor classes properly formed and the information complete.
We act for debtors from the decision to file through to an approved plan, and for creditors who need to protect their position, file their claims, vote and, where necessary, object.
How we help
What the work covers
Choosing the route
Comparing protective settlement, financial reorganisation and an agreed deal out of court.
Filing & moratorium
Preparing the application and protecting the business while the plan is built.
The plan
Creditor classes, plan terms, voting and approval by the court.
Creditors
Filing claims, voting and objecting on behalf of creditors.
Contact