Restructuring - specialist competence of Law Firm

New Restructuring Act will enter into force on 1st January 2016. Its main legal purpose is to create new instruments which let indebted entrepreneur to perform an effective restructuring, and in consequences, protect them before liquidation. Since new year, bankruptcy should be a last resort if restructuring turns out to be ineffective.

Restructuring Act contains four types of proceedings, which replace existing so far, but ineffective bankruptcy procedure with the possibility of arrangement. Depending on the level of risk of bankruptcy, it will possible to conduct: 1) proceedings to approve agreement, where will be possible to sign arrangement with creditors practically without court participation, 2) accelerated composition proceedings, where arrangement will be concluded at the creditors' meeting 3) composition proceedings, which will be dedicated for entrepreneurs close to insolvency or for such which already are insolvent and 4) restructuring proceeding, which purpose will be to restructuring of entrepreneur’s obligation and where debtor will have a limited ability to manage its assets.

New Act will function next to the preserved The Law of Bankruptcy, which however was amended in purpose to improve efficiency its previous instruments. It is worth to mention, that after Restructuring Act will enter into force, bankruptcy proceedings will be subsidiary to restructuring proceedings and will be carried out only if restructuring will turn out to be ineffective.

Due to the imminent entry into force of Restructuring Act, team of lawyers of our law firm, on our website, will present, in detail, the main assumptions of the new law.

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