Bankruptcy and reorganisation proceedings
We resolve insolvency-related issues. We help to find the best solution in situations related to payment difficulties.
Payment difficulties are predictable and hide behind aspects, such as:
- the income (profit) is less than the expenses;
- the rivals are in a better position;
- the activities included in the business plan do not give the expected results;
- reporting is not sufficient for making a decision;
- economic activity cannot be expanded due to insufficient capital;
- the product or service is losing its popularity;
- the buyers are keeping the money in their hands;
- loan obligations are increasing, etc.
The insolvency area is divided into hopeless and hopeful insolvency, i.e. bankruptcy, liquidation, and reorganisation proceedings.
Bankruptcy means that the company is declared insolvent by the court. It is essential to know that bankruptcy proceedings do not always mean terminating the company. Reorganising the company is also possible (overcoming the payment difficulties), as a result of which the company’s activity carries on.
The main stages of bankruptcy proceedings are the following:
- compiling the bankruptcy application and submitting it to the court;
- the court shall publish a note in the publication Ametlikud Teadaanded regarding the submission of bankruptcy application and appoint a trustee in bankruptcy;
- court’s pre-trial;
- the court examines the bankruptcy application;
- court’s decision on bankruptcy;
- notifying the commercial register about declared bankruptcy.
We resolve insolvency-related issues, helping to find the best solution in situations related to payment difficulties.
Bankruptcy proceedings do not always mean terminating the company, but in case of short-term cessation of economic activity also providing a solution to creditors similarly to reorganisation proceedings.
We provide legal assistance for bankruptcy proceedings and offer the following services:
- the legal and economic analysis of a legal or natural person to prevent insolvency or evaluate the situation;
- compiling a bankruptcy petition and required annexes;
- submitting objections to a bankruptcy petition;
- compiling a proof of claim in bankruptcy proceedings;
- compiling a rehabilitation or compromise plan;
- protecting the rights of a private person who is a debtor in the bankruptcy proceedings and representing him in the court;
- representing a creditor in bankruptcy proceedings and in court;
- protecting the rights of a legal person’s management body.
Reorganisation is bringing the company out of financial difficulties through continued economic activity, as a result of which the company’s liquidity and sustainable development are recovered. Reorganisation can be conducted both in the court and without court procedures. Reorganisation presumes thorough preparation while weighing both proceedings. Reorganisation without court procedures is conducted via agreements between the investor and creditors.
To initiate reorganisation proceedings, the following need to submitted to the court:
- annual report of the previous period;
- overview of financial situation;
- list of debts;
- reorganisation plan project.
In reorganisation proceedings, the court shall appoint a reorganisation counsellor and give a deadline for submitting the reorganisation plan.
We provide legal assistance in the different stages of reorganisation proceedings, including:
- legal and economic analysis to ascertain the premises of reorganisation;
- developing the reorganisation plan project;
- compiling the reorganisation petition and its annexes for the court;
- acting as a reorganisation counsellor;
- representing the company being reorganised or its creditors in the proceedings and in the court;
- representing a company’s management bodies in the proceedings;
- representing an investor in the proceedings.