Often entrepreneurs are in a position to no longer be able to follow the agreements made with banks or other creditors, either for the period of crisis in place, either for wrong business choices or for any other reason. In these cases it is possible to run for cover before it is too late through the institution of ‘corporate debt restructuring’.
Companies of any type (including agricultural) and size can take advantage of this institute (the individual company is also envisaged), but it is necessary that the debt exposure be such as to bring the company to the cessation of the activity.
What is it about?
This is a proposal for an agreement with which the company presents to its creditors a plan to reduce the pressure of debts and, consequently, allow the business to emerge from the moment of crisis. If the agreement is reached, it will then be entered in the business register. Given the technical times, in many cases sufficiently dilated, it is possible to draw up the agreement and, on the basis of creditors’ approval, use it to avoid the aggression of some assets belonging to the company’s assets, waiting for them to be fulfilled. the various formalities.
This act consists of a report written by an expert in which he comes attested to the veracity of the company’s economic data and the feasibility of the plan that underlies the restructuring. In this plan the methods and times of return must be specified .
The entrepreneur in a state of crisis has the faculty to request the approval of a debt restructuring agreement , but it is also essential that the creditors join the plan, reaching at least 60% of the total coverage of the debt exposure .
Creditors who do not participate (as long as they do not exceed 40%) still have the right to a full reimbursement of the credits claimed, but can not oppose the completion of the debt restructuring . The calculation of the aforesaid percentages is done on the “weight” of the credit, therefore by quota and not by “witness”.
What debts are allowed?
In general they can be included in the debt restructuring agreement:
How can the debts due be extinguished?
In the restructuring plan the debtor must specify how he intends to meet his debts; can make different types of proposal, remembering that it is always the lender’s right to decide whether to accept the conditions or not.
In particular, among the various opportunities, he can propose:
Advantages and disadvantages
As for the advantages we can list some of them:
As for the disadvantages, the most important one is related only to the part of receivables not included in the restructuring that must still be paid in full. For the payment of these there are times that must be respected, namely:
How is the procedure?
The process for the debt restructuring to be valid must follow the following steps:
Debt restructuring agreement: who to contact
To obtain a debt restructuring agreement, mediation and negotiation skills are needed to propose convincing corporate debt restructuring strategies to creditors. According to the art. 182 bis of the Bankruptcy Law the request must be accompanied by “a report drawn up by a professional, appointed by the debtor (…) on the veracity of company data and on the viability of the agreement with particular reference to its suitability to ensure full payment of foreign creditors “.
Furthermore, it is important to perform an analysis of the bank contracts at the base of the debt, to check for any critical issues, to be exploited, through a financial report, during negotiations with the creditor banks (for example, the presence of bank interest or usury ).
For this reason, to undertake a process of debt restructuring it is essential to rely on professionals specialized in the recovery of financial losses that can help the debtor with an assisted negotiation in the resolution of disputes and conclude beneficial debt restructuring agreements.
If you are an entrepreneur who can no longer cope with the debts incurred and you do not want to lose everything you have invested in … contact us and request your FREE advice by filling out the FORM BELOW!