When restructure?

The basic assumption of the legal restructuring is insolvent, ie when the state enterprise (temporarily) not able to fulfill its obligations. Insolvent is the one who is unable to perform 30 days overdue at least two financial liabilities to more than one lender. It should be noted that today are not uncommon cash flow and meets with them almost every other entrepreneur who is often not their wine gets into a sticky situation.

Although the company is unable to meet its obligations it is not always a necessity to declare bankruptcy liquidation. Where there is a presumption of maintaining at least a substantial part of the business operations of the debtor and, if the authorization of restructuring can be reasonably assumed greater extent than satisfaction of creditors of the debtor in the event of bankruptcy can instruct the administrator to draw up a restructuring opinion and if leave of the court to start the restructuring proceedings. Another prerequisite is the implementation of restructuring business that generates at least some profit respectively. there is a presumption that after the restructuring will generate such a profit.

The purpose of the restructuring is not only to assist the Borrower to reinvigorate business perspective, but also to satisfy his creditors a greater extent than would have been satisfied of bankruptcy proceedings.