Reorganization of a company means the application of various measures to overcome financial difficulties, restore liquidity, improve profitability and ensure sustainable management.
If your company has become insolvent but you expect that it can once again become a functioning business after the result of the reorganization, then it can spare you from temporary insolvency and avoid bankruptcy.
The prerequisite for initiating reorganization proceedings is a proper application to the court. If the entrepreneur confirms that the insolvency of the company in the future is likely, the company needs restructuring and sustainable management of the company is likely to be possible after the restructuring, the court initiates restructuring proceedings. Notices of the restructuring procedure are published in Ametlikud Teadaanded (Published Notices).
The court appoints a restructuring advisor to the company. He helps the entrepreneur prepare a reorganization plan at the beginning of the reorganization procedure, which must be approved by creditors and/or the court. During the restructuring procedure, the restructuring advisor monitors the implementation of the restructuring plan and reports on it to the court and creditors.
