We provide specialized assistance and out-of-court and in-court restructuring solutions. Our team of experts holds a wealth of experience in successfully managing highly complex projects for top companies in various industries.
Restructuration
RESTRUCTURING INSTRUMENTS:
- Financial restructuring
- Operational restructuring
- Tax restructuring (GO no. 6/2019)
- Restructuring agreement (Law no. 85/2014)
- Arrangement with creditors (Law no. 85/2014)
- Legal restructuring (Law no. 85/2014)
WE ARE A TRUSTWORTHY PARTNER WHEN OVERCOMING CRISIS SITUATIONS
Our multidisciplinary team, which includes top advisors (lawyers, financial experts, and insolvency practitioners), holds extensive experience in providing integrated pre-insolvency and insolvency advisory services, both in favor of the debtors, with the aim of identifying efficient solutions for the reintegration of the company into the economic circuit and protecting the interests of the shareholders and corporate governance bodies of the company, and in favor of the creditors, in order to maximize the degree of recovery of claims.
OUR APPROACH:
We perform an independent analysis of companies in order to identify what causes performance decline or crisis situations, as well as the options to consider for a successful recovery.
Whether operational restructuring measures (for instance, working capital improvement through process optimization, redefinition of trade terms, cost reduction) or financial measures (for instance, reconsideration of financial exposures, identification of alternative funding sources) are envisaged, we provide specialized support to review or draft the restructuring plan.
To the extent that the restructuring options concern the solutions offered by the pre-insolvency legal framework, we successfully take on the position of Restructuring Administrator or Composition Administrator, our experience summing up to some of the most complex restructuring projects, both in size and as to the difficulty of the related issues.
Should the solutions and instruments offered by the pre-insolvency legal framework not suffice to protect the debtor and restructure the business, and the option is to reorganize during the insolvency proceedings, we take on the position of Official Receiver or Advisor, placing at our partners’ disposal creative solutions adapted to successfully achieve the envisaged objectives.
WE CAN BE YOUR PARTNER TO RESTRUCTURE YOUR BUSINESS
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Financial restructuring
To the extent that the context allows for the implementation of an out-of-court restructuring solution, such as financial restructuring, we assist companies with the drafting and implementation of the financial restructuring plan.
To this end, we assist companies with rescheduling the current financial obligations, renegotiating the current terms, or identifying alternative funding solutions. -
Operational restructuring
We assist companies with improving the performance of the working capital, we analyze the critical aspects to identify quick solutions, short or long term, we develop an action plan focused on the optimization of processes, monitoring, the improvement of the trade terms and of liquidity.
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Tax restructuring (GO NO. 6/2019)
We provide financial and legal advisory services to the companies faced with restructuring their financial obligations under the provisions of GO no. 6/2019.
We have a thorough experience in:
– drafting the restructuring plan and the prudent private creditor test;
– assistance during the implementation and restructuring process in their relation with the tax authorities;
– monitoring and implementing the restructuring plan. -
Restructuring agreement (Law no. 85/2014)
The restructuring agreement is the insolvency prevention proceedings whereby the debtor can recover their business by paying the affected claims in whole or in part on the basis of a restructuring plan voted by the creditors whose claims are affected.
Initiator: solely the debtor.
Key elements:
– temporary difficulty of the debtor/they are not in a state of insolvency;
– the restructuring may involve operational and/or financial restructuring, recovery (sale) of assets, of the company as an independent unit, reorganization of the legal entity (merger or divestiture), modification of the share capital structure;
– the debtor continues to be the owner of the business;
– it is voted by at least 30% of the value of the affected claims;
– implementation period: 24 months, possibly extended by 12 additional months;
– it is confirmed by the syndic judge, following the verification of the lawfulness conditions.ProAdvisors supports the companies in distress and their creditors by taking on the position and responsibilities of a Restructuring Administrator, providing extended assistance concerning the analysis of the state of distress, assistance to perform the restructuring agreement, assistance to negotiate the restructuring agreement, as well as monitoring the implementation thereof.
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Arrangement with creditors (Law no. 85/2014)
Another instrument companies in distress may resort to is the pre-insolvency proceedings whereby the debtor can recover their business by paying the affected claims in whole or in part on the basis of a restructuring plan voted by the creditors whose claims are affected.
Initiator: the debtor or creditor with the debtor’s consent.
Key elements:
– temporary difficulty of the debtor/they are not in a state of insolvency;
– the opening of the proceedings cancels enforcement;
– the restructuring may involve: operational and/or financial restructuring, recovery (sale) of assets, of the company as an independent unit, reorganization of the legal entity (merger or divestiture), modification of the share capital structure;
– the debtor continues to be the owner of the business;
– it is voted by at least 30% of the value of the affected claims;
– implementation period 24 months, possibly extended by 12 additional months;
– it is confirmed by the syndic judge, following the verification of the lawfulness conditions.Our restructuring specialists, insolvency practitioners, members of UNPIR (National Union of Insolvency Practitioners in Romania), take on the position and responsibilities of a Composition Administrator, providing extensive assistance with the drafting of the creditors’ list, the analysis of the state of distress, the drafting of the arrangement offer and of the restructuring plan, negotiations, fulfilling the supervision responsibilities for the implementation of the restructuring plan.
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LEGAL RESTRUCTURING (Law no. 85/2014)
Should the restructuring and protection instruments offered by the pre-insolvency proceedings not suffice, companies are allowed to restructure during the insolvency proceedings via legal reorganization, to be applied to the debtor in order to settle all or part of their debts in accordance with the debt payment schedule in the Restructuring plan.
Our team of insolvency practitioners holds particular experience in the restructuring during the insolvency proceedings, providing full professional services in the field, both as Official Receiver, and as specialized advisor.
We assist debtors and creditors with drafting the legal restructuring plan, the prudent private creditor test, their representation during the negotiations concerning the payment arrangements, their representation during the negotiations concerning the rescheduling of debts to creditors, the recovery (valorization) of assets during the insolvency proceedings, as well as any other aspects necessary for a successful reorganization of the debtor’s activity and their reintegration into the economic circuit.