Remediation - a number of legal, financial, economic and organizational measures aimed at improving the financial condition of enterprises in order to stave off bankruptcy.This term is derived from the Latin word sanatio, which translated means recovery.Remediation - a system of measures, which is particularly essential to many businesses in the economic crisis.However, these measures only apply to firms that have a potential to restore its solvency.
Basically, there are three cases in which reorganization is carried out.
- enterprise on its own initiative trying to get out of the crisis.
- company refers to arbitration in order to recognize its bankruptcy and of recovery.
- decision of the arbitral tribunal on the basis of applications received from lenders.
main objectives improvement
- debt to creditors.
- Total debt restructuring.
- Improving finances and restoring economic activity.
- Changes in the structure of the enterprise.
Events are pretrial and trial.
Prejudicial Readjustment is a measure for the reorganization of the enterprise with financial assistance to owners or creditors, which aims to restore solvency.To pre-trial activities also include the recognition of an independent firm of bankruptcy.However, this requires written permission from the lenders.If at least one of them does not agree, then head for the recognition of the bankruptcy should go to arbitration.
judicial reorganization - a declaration of bankruptcy by appealing to the Court of Arbitration with the subsequent transfer of authority for the management firm external control.Improvement may not last longer than 18 months.If the situation does not change and solvency can not be restored, the company finally declared bankrupt and start bankruptcy proceedings.
recovery plan
main document, according to which the reorganization made the company - it's her plan.It substantiates the main objectives, and also the ways to achieve them.The rehabilitation plan is an example of what should be done to restore the solvency of the company and return it to productive economic activities.The main objectives of the plan - a modernization of the enterprise, increasing production volumes and its successful implementation.These methods carried out a full rehabilitation of the debtor.Timely rehabilitation - a complex of measures, which could save the company from complete bankruptcy.It can be conducted without changing the legal status of the debtor and its change.
main methods of healing.
- Reduction of the share capital and the reduction of the emission of new shares.
- Obtaining loans, credits, government grants.
- merger or acquisition of a larger structure.
- liquidation of the company and the creation of a new one.
Remediation - a powerful tool that helps businesses overcome the crisis and continue normal operations.
