Company reorganisation
We help our clients manage crises and insolvencies
Company reorganisation in Gothenburg and Kungsbacka
A company reorganisation aims to restore the viability of a company that is inherently profitable, but which for some reason has fallen into a financial crisis.
At Glimstedt’s offices in Gothenburg and Kungsbacka, we have extensive experience of helping our clients with commercial law.
We help our clients manage crisis situations and insolvencies
How is a company reorganisation carried out?
Company reorganisation aims to restore the viability of a company that is inherently profitable, but which for some reason has fallen into a financial crisis. The company may need to undergo both a financial reorganisation and a business reorganisation, i.e. the company changes its production focus, marketing, manufacturing, etc. According to the legislators, company reorganisation is ‘a procedure aimed at giving a business owner who has payment difficulties a period of grace during which he can take measures to improve his business results and an opportunity to negotiate a composition with his creditors’ (Bill 1995/96:5, p. 56).
According to the preparatory works of the Act, it is important from both a social and a business perspective that companies in crisis are restructured at an early stage in order to regain their viability before the crisis is so deep that bankruptcy is the only option. Dissolution through bankruptcy always entails a risk of capital destruction. There is therefore a need to promote the reorganisation of companies in crisis before they become insolvent and thus bankrupt.
Bankruptcy proceedings aim to dissolve the company and distribute the remaining assets among the creditors. A company reorganisation, on the other hand, has the opposite purpose. It aims to consolidate and develop the business for the benefit of society, employees, creditors and owners.
A prerequisite for a decision to authorise a company reorganisation is that it can be assumed that the company is unable to pay its debts as they become due or that such inability will occur in the near future. The company must therefore be illiquid or there must be a risk of imminent illiquidity. The fact that the company is insufficient is not enough for a procedure to be initiated. It may be useful to know that there is no lower financial limit to the solvency of the company. The company may therefore be insolvent when the application for company reorganisation is submitted to the district court.
Do you need help with company reorganisation?
At Glimstedt’s offices in Gothenburg and Kungsbacka, we make your business life a little easier.
We have extensive experience in insolvency law and in the role of reorganiser during a company reorganisation. Contact us for a free initial consultation.
Our Expert Lawyers in insolvency and business dissolution – Gothenburg and Kungsbacka
Niclas Elison
Otto Hansson Johansson
Erik Lindskog
Johannes Andersson
Advokatfirman Glimstedt has eleven offices in Sweden and three in the Baltic States. Visit www.glimstedt.se to learn more about our entire business.