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Company restructuring and insolvency
At Almgren & Sankamo, we have three decades of experience in insolvency and bankruptcy proceedings. Our lawyers evaluate a company’s situation and its options for insolvency processes quickly and professionally before presenting proposed methods and procedures. We apply our professional expertise to assisting client companies restructure their operations and return to viability, or to wind down operations in a controlled manner.
Company restructuring is a procedure aimed at returning to profitable operation by rearranging the company’s operations and rescheduling its debts. Unprofitable operation is wound down while the focus shifts to more economically viable core business. Usually, debts are reduced and a new repayment programme is drafted for the remaining amount of debt. A district court confirms the programme, subject to certain requirements. The company is forgiven debt, which is written off if it can comply with the restructuring programme.
Company restructuring is a useful way of returning a company to viable operation. Restructuring provides protection against bankruptcy, although it is often the last resort to avoid bankruptcy.
Restructuring is also possible even after creditors have initiated bankruptcy proceedings, but for a successful outcome it is best to start restructuring at as early a stage as possible.
Experience tells us that a successful outcome for restructuring is more likely, the faster a company can react to the changed situation it faces. If your company’s situation has deteriorated, we recommend that you contact us for advice.
A basic requirement for initiating restructuring is insolvency, or the threat of insolvency, and the company’s ability to return to profitability through the restructuring. We provide assistance in drafting an application for company restructuring, and in the restructuring proceedings, backed by many years’ of experience in this specialist area.
Bankruptcy and recovery to bankruptcy estates
A company can apply for bankruptcy if it is unable to meet its debts to creditors. The requirement is, therefore, that the company is insolvent. A company can be declared bankrupt if the company itself or its creditors submit a bankruptcy petition. The company itself filing for voluntary bankruptcy makes sense when bankruptcy is in any case imminent.
We apply our wealth of experience in bankruptcy disputes, criminal proceedings and recovery to a bankruptcy estate to assisting our clients. Recovery to a bankruptcy estate refers to a company that has gone bankrupt claiming back from creditors any payments made to the creditor before bankruptcy was declared. Finland’s Act on the Recovery of Assets to Bankruptcy Estates aims for equality amongst creditors in situations where a debtor is close to insolvency. The underlying purpose is to avoid a debtor with repayment difficulties concealing assets from creditors, or favouring one creditor at another’s cost.
Ask Almgren & Sankamo’s experts to help you!
Annamme konkreettisia neuvoja maksuvaikeuksiin joutuneille yrityksille sekä kerromme, kuinka asioita kannattaa ja pitää ennakoida.