Sanitation of the debtor before the opening of bankruptcy proceedings

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Shakhovets Anastasia

Lawyer in the practice of bankruptcy of individuals and individual entrepreneurs. Specializes in write-off of bank and MFI loans through the bankruptcy procedure.

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Sanitation of the debtor before the opening of bankruptcy proceedings

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Sanitation of the debtor before the opening of bankruptcy proceedings is a set of precautionary measures aimed at restoring the debtor's solvency, which can be carried out by owners, company managers or other interested parties even before the official recognition of bankruptcy.

Such rehabilitation includes organizational, financial, investment and other measures, the purpose of which is to prevent the liquidation of the debtor by stabilizing its activities and restoring solvency. It allows you to avoid the official bankruptcy procedure with its negative consequences.

 

Sanitation plan

Sanitation plan is a strategy to save a company from bankruptcy. It contains a number of targeted measures to restore the company's solvency before bankruptcy proceedings are opened.

The plan is developed for a specific situation and includes:

  • Specific amounts, terms and conditions of settlements with creditors participating in the reorganization.
  • A clear algorithm of actions and a system of control over the implementation of the plan.
  • Powers of the project manager for financial improvement.

If necessary, the plan can outline:

  • Differentiated approach to different groups of creditors.
  • Mechanisms for attracting additional funding.
  • Other possible options for improving the company.

The effectiveness of the plan is confirmed by an analysis that proves the advantages of rehabilitation over bankruptcy. An assessment of the ability to implement the proposed measures is also attached.

Who can initiate the debtor's rehabilitation procedure?

The following can initiate the debtor's rehabilitation procedure before opening a bankruptcy case:

  • Founders of the debtor are persons who created a legal entity (enterprise, institution, organization). They make the decision to initiate rehabilitation at the general meeting.
  • Participants of the debtor - persons who contributed property to the authorized capital of the economic company (for example, participants of a limited liability company). Decisions on rehabilitation can be made at the general meeting of participants.
  • The debtor's shareholders are the owners of shares of the joint-stock company. They have the right to initiate remediation by adopting a corresponding decision at the general meeting of shareholders.

 

Advantages of carrying out rehabilitation before the opening of bankruptcy proceedings

Such advantages can directly include:

  • The ability to quickly start rehabilitation measures without waiting for the official opening of the bankruptcy case. This allows for a faster stabilization of the debtor's financial condition.
  • Greater independence of the debtor in choosing rehabilitation measures. At this stage, the debtor independently develops a rehabilitation plan, and in the event of opening a case, the rehabilitation will take place under the control of the arbitration administrator.
  • Avoiding the negative consequences of the official opening of a bankruptcy case, such as the seizure of bank accounts, the complication of the terms of obtaining loans, the loss of trust of partners, etc. Sanitation before the opening of the case allows them to be avoided.

Does your company need rehabilitation?

If you doubt whether the rehabilitation procedure is suitable for your company, we advise you to contact the specialists of the law firm "Prykhodko and Partners".

Our lawyers will help analyze whether the company has a real opportunity to restore solvency through rehabilitation, provide recommendations on rehabilitation measures and evaluate their effectiveness, help draw up a rehabilitation plan and organize its implementation, consult on all legal issues related to the rehabilitation procedure.

Our specialists will comprehensively assess the situation and opportunities of your business and give qualified advice on the appropriateness of rehabilitation for you. Apply! We are always open for customers.

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