Restructuring
Restructuring is a complex and demanding process of adapting the legal, financial, ownership and operational structure of the company in order to overcome all the possible difficulties incurred.
In this demanding process, all stakeholders must share the “restructuring costs” in order to stabilize future business perspectives of the restructured company.
Company restructuring procedure through the court is regulated by the Serbian Bankruptcy Law, which is active from March 2010, with amendments in force since 2014:
- The Law regulates the process of restructuring companies through the commercial courts procedure, using the pre pack reorganization plan and the reorganization plan from bankruptcy;
- Restructuring deadlines of companies are clearly defined and short, which requires timely and efficiently actions of all stakeholders in the process;
- In the process of restructuring companies, commercial courts are obliged to complete the restructuring process in a most efficient way which is essential for maintaining business operations of the restructuring company;
- With the support of the largest creditors, the restructuring process can be used to successfully solve the most sensitive issues related to its future survival in the market.
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Restructuring services
Our consulting company offers the full set of services in the process of company restructuring, in particular:
- Running the entire process of restructuring through the relevant commercial court;
- Complete preparation of the pre pack reorganization plan, or the reorganization plan;
- Preparation of all documents necessary for the successful implementation of the court proceedings;
- Guidance and assistance in negotiating with the most important creditors of the company;
- Monitoring the implementation of adopted reorganization plan, finding partners to provide working capital, improve corporate governance etc.
In addition to company restructuring through court proceedings, our company also provides consulting services in the process of out of the court restructuring, especially in the process of financial consolidation.

Timeframe and the preparation phases of reorganization plan
…timing is crucial, and preparation of reorganization plan in the early stages of company insolvency, when there is still a trust between the company and the creditors, is essential.
The Bankruptcy Law defines the procedure, terms and stages in preparing the reorganization plan. By submitting complete reorganization plan and the appropriate company documentation to the relevant commercial court, the company has the opportunity to seek protection from the court in order to prohibit the execution procedure on the assets of the company, for a period up to 6 months.
The adoption of the plan requires a simple majority support in each class of creditors, so the negotiations with the most important creditors can be very efficient and effective. Adopted plan has the force of enforceable court document and presents a combination of court decision and agreement with creditors on the manner of their settlement. If the plan is not adopted the company continues with its regular operations.

Restructuring measures
Bankruptcy Law identifies 18 different restructuring measures, including debt write off and liabilities rescheduling, converting debt into equity, sale of non-operating and operating assets, introduction of strategic partners, etc. The Law does not prohibit all other measures which are not in collision to other legal regulations in Serbia.
