Reorganization is the set of actions aimed at reinstatement of enterprise solvency. The reorganization conduct is the way of leading the enterprise out of the crisis.

The reorganization is conducted in the process of bankruptcy proceeding and helps to resuscitate the company’s financial position, to avoid its complete liquidation and to satisfy the creditor’s requirements partially or in corpore.

The company’s competitiveness is restored by means of complete or partial company’s reorganization, restricting debts before creditors, providing financial support for account of internal funds, owners’ funds, passing of property, change, supplement of kinds of activity.

In Ukraine the procedure of reorganization is regulated by the law of Ukraine “On the restoration of debtor’s solvency or declare bankrupt”.

The initiator of reorganization procedure is a debtor or a creditor, but before the petition in bankruptcy proceeding.

The plan of reorganization defines the procedure of reorganization that is conformed to committee of creditors, the body that is authorized to administer the state property for the enterprises with state form of property. The plan of reorganization is approved by commercial court. The term of reorganization procedure should not exceed 12 months.

Depending on the level of the company’s crisis situation in the reorganization procedure there exist two ways of situation development:

The first one concerns the enterprises the crisis situation of which is defined as temporary and provides for the juridical person status preservation. In such case the reorganization is aimed at debt restricting. For the public enterprises it is possible for account of budgetary funds allocation. For the private enterprises there is possible the bank credit or the transfer of debt onto another juridical person after the audit.

The second one concerns the enterprises in deep crisis that involves complete reorganization and the change of form of ownership. Within the scope of this method there is the possibility of amalgamation of reorganized enterprise with another one more financially sound enterprise or the debtor enterprise take-over by the turnaround company. In the same time there is the possibility of transfer to another form of ownership, such as JSC.

The procedure of reorganization is finished in the case of:

  • Reestablishing debtor solvency;
  • Entering into amicable agreement between creditors and debtor;
  • The termination of reorganization procedure and passage to liquidation procedure.

At our time any company is not indemnified from possible facing to carrying reorganization procedure.

Our specialists provide such services:

  • drawing up of a plan of reorganization
  • approval and agreement of the reorganization plan with inventory control body
  • reorganization plan realization and support
  • restricting of duties within the scope of reorganization plan
  • trustee in bankruptcy services
  • sale of debtor property.