Restructuring Plan Research Articles

Legal status of the creditor in the case of bankruptcy: a comparative analysis

The article focuses on the importance of comparative analysis of legal systems of different countries for finding and implementing best practices in the field of bankruptcy. One of the key issues is ensuring effective protection of creditors’ rights in the bankruptcy process. This aspect of regulation is not only an important tool for stabilizing national economies, but also an important element of international economic security, as it allows to prevent losses suffered by bona fide creditors due to the insolvency of debtors. It is emphasized that in Ukraine, given the crisis circumstances caused by military actions, further deterioration of the financial condition of both legal entities and individuals can be expected, and therefore, an increase in cases of insolvency. In this context, international experience becomes extremely useful for the further improvement of Ukrainian bankruptcy legislation, in particular, in the direction of expanding the rights of creditors, as well as increasing the effectiveness of protecting their interests. The main purpose of the article is a comparative analysis of the legal status of the creditor in bankruptcy cases in such countries as Germany, the USA, Great Britain and Ukraine. It is emphasized that each of the considered countries has specific approaches to the regulation of creditors’ rights. For example, in Germany, according to the law, creditors can open a bankruptcy case, but their role in the process of managing the debtor’s assets is limited. On the contrary, in the US, creditors have the opportunity to more actively influence the restructuring plan, but at the same time, the legislation provides ample opportunities to defend the interests of the debtor, significantly limiting the rights of creditors. The importance of the principles of the World Bank for the effective settlement of insolvency, which became the basis for improving national systems and ensuring the rights of creditors at the international level, is noted. For example, the provisions of the Code of Ukraine on bankruptcy procedures contain specific steps to strengthen the position of creditors by strengthening control over the liquidation mass, shortening the terms of procedures and increasing the transparency of court processes.

Hungarian Model of the Restructuring Process - National Report

As a result of the transposition obligation in Article 34 of Directive (EU) 2019/ 1023 of the European Parliament and of the Council on restructuring frameworks and insolvency, Act LXIV of 2021 (hereinafter - referred to as the Restructuring Act) on restructuring and the amendment of certain acts with the purpose of legal harmonisation was promulgated on 3 June 2021, effective as of of 1 July 2022 for any legal persons struggling with financial difficulties not yet insolvent. The creation of a restructuring model prescribed by the EU directive was implemented by the Hungarian legislator through the opening of a non-contentious court procedure ordered within the jurisdiction and exclusive competence of the Metropolitan Court of Budapest. The primary aim of this paper is to develop a complex and comprehensive picture of the restructuring procedure as placed within the system of insolvency and reorganisation procedures in Hungary. Firstly, the paper showcases the unified EU objectives set out by the directive within the system of European insolvency procedures. Secondly, it describes the Hungarian procedural rules and the most important related legal institutions adopted to implement these objectives. Section 6 of the Restructuring Act sets out that the aim of restructuring is to adopt and implement a restructuring plan with some or all of the creditors and thus prevent the debtor’s future insolvency and ensure the debtor’s financial viability. For the purpose of reaching this objective, therefore, restructuring constitutes measures aiming at restoring the financial balance of the debtor, including changing the composition, the conditions or the structure of the debtor’s assets and liabilities and any other part of the debtor’s capital structure. Among these measures, the Restructuring Act lists as example the sale of the debtor’s property or part thereof, or the sale of any participation in the debt. The condition for restructuring is the likelihood of the company’s insolvency. The definition of the likelihood of insolvent Directive (EU) on restructuring frameworks and insolvency, European insolvency procedures, insolvency and reorganisation procedures, restructuring plan, non-contentious court procedure bears a central significance here: it constitutes the entrance point into the restructuring procedure. In addition to the definition of insolvency, Section 2(2) of the Restructuring and Insolvency Directive renders the interpretation of the probability of insolvency into Member State jurisdiction. Among the Explanatory notes the Restructuring Act defines the likelihood of becoming insolvent as a situation in which there are reasonable grounds for believing that the debtor will be unable to meet his/her outstanding payment obligations when they fall due, unless further measures are taken. Keywords: Directive (EU) on restructuring frameworks and insolvency; European insolvency procedures; Insolvency and reorganisation procedures; Restructuring plan; non-contentious court procedure

Strategic Resilience and Financial Analysis of Merck & Co., Inc.: Navigating Challenges and Opportunities in the Pharmaceutical Industry

This study provides a comprehensive analysis of Merck & Co., Inc. (MRK), a prominent player in the global pharmaceutical industry, known for its significant contributions to healthcare through the development of innovative drugs and vaccines. Merck's core focus areas include pharmaceuticals, vaccines, animal health, and healthcare services, with its flagship oncology drug Keytruda being a major revenue contributor. The company faces challenges such as regulatory changes in drug pricing and competition from biosimilars and generics. To mitigate these challenges, Merck has initiated restructuring plans, including the 2024 Restructuring Plan, to optimize operational efficiency and achieve significant cost savings. The paper also presents a comparison of Merck's financial performance with industry peers - Johnson & Johnson, AbbVie and Bristol-Myers Squibb - and evaluates liquidity, solvency and profitability metrics. Despite certain challenges, Merck's robust market positioning, strategic acquisitions, and active involvement in the development of COVID-19 vaccines and therapeutics underscore its potential for sustainable growth. Overall, the study concludes that Merck's strategic investments, coupled with its strong financial position and proactive restructuring efforts, make it an attractive investment prospect, particularly in its core therapeutic areas of oncology and immunology. This paper suggests that future research could delve deeper into the long-term impact of R&D investments, the intricacies of restructuring plans, and evolving market trends to provide a more nuanced understanding of Merck's strategic planning.

Towards a sustainable energy future: Modeling Morocco’s transition to renewable power with enhanced OSeMOSYS model

Developing countries encounter numerous challenges, such as limited access to reliable electricity and a heavy reliance on imported fossil fuels. To satisfy the rising energy demand, which is essential for economic growth, these regions are shifting towards sustainable energy solutions. Solar and wind power have emerged as key and secure energy sources. This research develops an enhanced OSeMOSYS energy system model to examine long-term energy supply strategies, using Morocco as a case study. The proposed model addresses the specific needs of decision-makers in developing countries, enabling the achievement of renewable energy targets and optimal temporal resolution. A baseline and three alternative scenarios were developed, exploring both a restructuring plan to address existing gaps and a forward-looking policy targeting nearly 100 % renewable energy. These scenarios are assessed in terms of installed capacity, generation mix, investment costs, variable and fixed costs, storage capacity utilization, and carbon emissions. The results indicate that a 92 % integration rate for renewables is feasible at an additional cost of $32 billion, thanks to new energy efficiency measures reducing demand by 15 % between 2030 and 2050 compared to baseline forecasts. Furthermore, an ambitious energy strategy by 2050 could achieve the lowest emissions rate of 0.29 Mt, paving the way for complete decarbonization. Technologically, investment in pumped-storage hydroelectric plants is the most viable backup option for a country dependent on natural gas imports. Our findings emphasize that a diversified energy mix and robust energy efficiency plans are essential for a rapid and feasible transition of the country’s energy system. This paper offers an enhanced energy model to help decision-makers in developing countries set targets on the share of renewables in total installed capacity, thereby increasing their integration rate at minimal additional cost.

ОСОБЕННОСТИ ПАРЛАМЕНТАРИЗМА В РЕСПУБЛИКЕ КОРЕЯ

Особенности парламентаризма в Республике Корея связаны с тем, что он возник после образования Республики Корея в 1948 г. И с тех пор Корея всего год была республикой с нормальной парламентской деятельностью, а в остальное время парламент действовал в условиях либо военной диктатуры, либо президентской республики, причем около 50 лет в условиях оппозиционного большинства в парламенте. При этом Конституция страны не предусматривала роспуска парламента. В условиях демократизации, большинство избирателей составила мелкая буржуазия со свойственной ей неустойчивостью, что приводило к противостоянию парламента и президента. The Constitution of the Republic of Korea was created with the active participation of American specialists, however, in some innovations relating to the president and parliament there are significant differences from US norms. For example, in the Constitution of 1948, and then in constitutions under military regimes and during the period of democratization, the parliament is unicameral. The latest constitution, adopted in October 1987, established different terms of office for the president and parliament. The President can only serve one five-year term. Therefore, the years of presidential and parliamentary elections coincide only once every 20 years. This creates very complex political and legal problems not only in the country’s governance system, but also in the overall vector of economic and socio-political development. It often happens that either the president is forced to start his work with an opposition parliament, or the parliament becomes opposition as a result of elections, which can take place at the beginning or middle of the president’s term. President Yun Seok-yeol took office on May 10, 2022, when the opposition party had a significant majority in parliament. He had big plans for restructuring the government and reforms, but he understood that the opposition, led by his opponent in the elections, would not allow him to pass the relevant laws through parliament. He set a course for changing the composition of parliament in the elections on April 10, 2024, so that after the elections for the remaining three years of his presidential term, he could pass the necessary laws through parliament, where he hoped he would be able to obtain a loyal composition. Two weeks before the parliamentary elections on April 10, 2024, his approval rating was 34%. The election results are as follows: the presidential party (Gukmin Him – People Power) received a total of 108 parliamentary seats, the main opposition party (Toburo Minjudan Democratic Party of Toburo) – 175, a party that emerged just a month before the elections under the significant name Choguk Heksin Dan (Innovation Party Homeland) – 12, Gehek Sindan Party (New Reform Party) – 3, Seroun Mire Party (New Future) – 1, Chinbo Dan (Progress Party) – 1. The main reason for this result of the parliamentary elections is a negative assessment of the president’s activities, although economic reasons also played a role, including rising prices for consumer goods, primarily food. A week after the elections, public opinion polls showed that the president’s popularity rating was only 23%, and the number of people who assessed his activities negatively was 68%. Over the past 20 years, in almost all party factions in parliament, three main ones have been distinguished – the so-called zhuryu (main current), i.e. a group loyal to the leader of the party and faction, then the bijuryu group (not the main current) – not part of the main group, it can sometimes have up to 25% of the deputies and its opposition can greatly weaken the position of the main current. And finally, the third group is banzhuryu, i.e. anti-main stream, deputies who often do not agree with the course of the party and faction at all. In this situation, naturally, the opposition will try to use some kind of pretext to impeach the president. During parliamentary decisions to impeach the president in 2004 and 2016 opposition managed to attract votes from at least two dozen deputies from the presidential party. And now the task is to attract at least 8 deputies from the ruling party. Since there are several dozen deputies who are skeptical about Yoon Seok Yeol’s presidency, the task does not seem impossible.

Debt restructuring procedure of an individual

The article examines the procedure for restructuring debts of an individual in the process of bankruptcy. It is noted that the relevance of this article in the context of the procedure for restructuring the debts of an individual in the process of bankruptcy is determined by the need to understand and develop mechanisms that will allow debtors with financial difficulties to receive effective support and preserve their rights during such procedures. On the basis of judicial practice, it is determined that the restructuring of the debtor’s debts is the first, mandatory and priority stage of the case of insolvency of a natural person, in which the debtor can exercise the right to change the method and order of debt payment, taking into account his objective capabilities and desire to settle with by creditors, having guarantees of leaving part of the income to meet household needs and can receive forgiveness (write-off) of creditor claims or part of them. The mechanism of drawing up a plan for restructuring the debts of an individual is analyzed. It was concluded that the restructuring of the debts of an individual is the optimal way to end the bankruptcy case both for the individual and for his creditors, since his solvency is restored and debts are repaid. The procedure for restructuring the debts of an individual will be implemented on the condition that the debtor implements the restructuring plan on time and in full. Based on the analysis of judicial practice and legislation, including European countries, it is proposed to implement out-of-court debt restructuring of an individual, namely the approval of a restructuring plan based on a settlement agreement between an individual and creditors. It is argued that a general retreat from excessive formality and burdensome procedures in restructuring the debts of individuals in Ukraine can contribute to improving the efficiency of this process and protecting the interests of all parties. Such implementation will help to improve the efficiency and accessibility of the debt restructuring procedure of natural persons in Ukraine, contributing to solving financial difficulties of citizens and ensuring the stability of the country’s financial system.

Research on Disposal of Non-Performing Assets of Listed Companies

China's economic development is affected by adverse factors such as cyclical and structural adjustment of the domestic economy, but also by the sudden impact of the international political and economic environment, and the complex economic environment at home and abroad has greatly challenged the development of Chinese enterprises. The problem of non-performing assets is a prominent problem facing the high-quality development of China's economy. It requires both enterprises to regulate their own risks and asset management companies to properly and reasonably dispose of non-performing assets to prevent these assets from having an impact on systemic risks and then affecting other economies. Solving the problem of non-performing assets in a reasonable way can effectively deal with the non-performing assets, and then promote and prevent the further spread of the non-performing assets crisis of enterprises. This paper analyzes that the asset disposal mode of "stock plus bond" provides a reference for other NPL disposal methods, and helps other enterprises to dispose NPL efficiently. When dealing with non-performing assets, there are risks from debtors and creditors. To prevent and address these problems, detailed and precise asset-liability analysis, a well-developed restructuring plan, and enhanced collaboration between departments are required." The "equity plus bond" model combines the centralized disposal method of non-performing assets, which can effectively deal with these non-performing assets, better reduce risks and improve operations.

Labor intensity as a strategic KPI for evaluating the efficiency of coal mines

In the face of the growing demands of the modern economy, 21st-century technology, and the challenges of Industry 4.0, the classical management of mining enterprises is not sufficient, and it is transforming into a process approach to the organization. The usage of the process management concept creates a situation for improving the organization at many levels, both at the strategy and operational levels. This provides an opportunity for a comprehensive view of the organization, but it is necessary to define indicators that determine the flexibility of operations, the achievement of profitability, and effective operational management. These indicators, called key performance indicators, focus on crucial aspects of the organization's activity that are fundamental to its current and future success. The contribution goal of the presented paper is to propose a new index for assessing the efficiency of coal mines, called the labor intensity index. The proposal is based on a previous three-area strategic analysis, including production indicators of coal mining companies, the state of coal mining in Poland, and economic factors affecting the current situation of the Polish coal mining industry. The analysis covered the period from 1988 to 2020. The use of new KPIs to assess performance in process terms is necessary to develop better new strategies for mining companies. It is particularly important in light of the industry's restructuring plans to restructure the mining industry and the far-reaching vision of decarbonizing the Polish energy sector.

Moratorium As a Crucial Component of Corporate Restructuring Under Saudi Bankruptcy Law

Abstract The moratorium or automatic stay is a fundamental component of corporate restructuring procedures. It provides the distressed company with a brief respite from its creditors by temporarily barring all collection efforts and all proceedings against the company and its assets. By temporarily barring such actions, the moratorium provides the company with time during which it can negotiate with its creditors and formulate a proper restructuring plan. The purpose of this article is to examine the efficacy of moratorium under the Saudi restructuring law in light of the UK and the US experiences. The article is principally concerned with two key issues: the scope of the moratorium and the circumstances under which relief from a moratorium may be granted.

Article: The Implementation and Transposition of the European Directive 2019/1023 in the Italian Legislative Context

With this article, the Authors intend, preliminarily, to provide a brief temporal excursus in order to the complex path that involved, on the Italian scene, the Code of the Corporate Crisis and Insolvency, from promulgation upon actual entry into force after approximately three years. Secondly, the paper tries to provide an overall picture of the major regulatory implementations, describing, in brief, the general characteristics of the Guidelines given by the EU Directive 2019/1023 (so-called Insolvency). Furthermore, the Authors, turning their minds to the supranational legislation that has affected the matter of insolvency, try to verify the compliance of the national provisions with the provisions of the abovementioned Directive. In the conclusions, the paper attempts to provide some hints on the possible application of the rules, which have just entered into force, in the context of the Courts, with particular emphasis on the so-called “early warning tools”. Bankruptcy, EU Directive, Corporate Crisis, Insolvency Code, Early warning tools, Corporate governance, European law, Over-indebtedness, Crisis, Voluntary restructuring plans

Eğitim Politikası Kontekslerinin Yeniden Yapılandırılması Sürecinde Planlama Yöntemleri

New policies in education are usually created when the current state of education and its contents, i.e. its contexts, are disrupted by a problem, a political decision or a restructuring plan. Policy options can be created in several different ways to adapt to the imbalance. The success of education policy depends on the creation of clear goals. If there are multiple goals, they must be consistent with each other. When conditions change, it should be flexible enough to be able to change them as well. While defining problems and goals in education, policy options should be formulated and evaluated. In many cases, more than one solution can be considered for policy adaptation. Goals can be achieved in many different ways. Best practices from other decision-making circles can be taken into account, and there may be a need to take into account all other possible solutions. By evaluating the options, it may be possible to determine the best one that meets the goals created. Even if the policy is implemented, these types of evaluation are expressed as predicted in advance, since their results are evaluated in advance. Educational policy options can be evaluated if alternative scenarios are developed that allow estimating the possible applications of noteworthy options. The imaginary situation that will be created when policy options are implemented is compared with the real situation, and the transition scenario of the existing imaginary situation can be evaluated in terms of willingness, affordability and applicability. The next stage after evaluating education policy options is decision-making. One of the most important functions in public administration and the public policy process is decision-making. Individuals or institutions have to make decisions in order to ensure their continuity. Decision-making should not be understood as simply doing something or taking a step. Sometimes not doing anything or not taking steps is also making a decision. Key Words: Education Policy, Restructuring, Planning Methods

Gratitude Experience in Ten Patients with Spinal Muscular Atrophy: A Qualitative Study.

This study aimed to investigate the gratitude experience of young and middle-aged patients with spinal muscular atrophy (SMA) during hospitalisation to provide a theoretical basis for medical professionals to develop gratitude intervention programs. Patients with SMA who were treated with nusinersen in the Department of Neurology of the First Hospital of Jilin University between April 20 and May 20, 2024 were selected using the purposive sampling method, and semi-structured interviews were conducted. The interview data were analysed using Colaizzi's 7-step analysis method. Four themes were extracted: gratitude stimulated positive emotions; gratitude enhanced life motivation; gratitude reflected the level of social support; and gratitude promoted life restructuring planning. Patients with SMA have gratitude experience and their own perception of life. Strengthened feelings of gratitude could be helpful to the psychological resilience of patients, influence their view of life in a grateful way of thinking and help them actively plan all aspects of their lives, from daily living to social re-integration.

Audit quality and debt restructuring: evidence from Italy

PurposeThis study aims to investigate the link between audit quality and in-court debt restructuring. The aim is to understand whether the confirmation of debt restructuring plans is affected by audit quality, which, in the light of agency theory, reduces information asymmetries between outsiders (creditors and the court) and insiders (shareholders and managers) of the debtor company.Design/methodology/approachA logistic regression is performed to test whether higher audit quality is associated with an increased probability of successfully completing a debt restructuring proceeding (RP). Consistent with the literature, audit quality is assessed ex ante based on auditor size, which is used as a proxy for independence. The analysis considers private Italian companies.FindingsAudit quality positively affects debt restructuring. Among financially distressed companies, those audited by an audit company are more likely to succeed in RPs than those audited by a single practitioner. There is no evidence of a Big N effect.Originality/valueThis study fills a gap in literature as, in contrast to other financial and governance characteristics, audit quality has never been studied before as a determinant of efficient restructuring. It contributes to the literature on auditing and governance by highlighting the importance of audit quality in complex situations such as RPs, and it expands on debt restructuring literature by considering the importance of the information exchanged during RPs.

Debt restructurings, debt grifting and the limits of contractualism

AbstractThis article critically examines corporate restructuring plans and schemes in the United Kingdom and United States and third‐party releases in the context of such corporate restructurings. So far, the practice has been more extensively examined in the United States rather than the United Kingdom and the practice has been castigated as ‘debt grifting’, that is, third parties getting the benefit of a bankruptcy discharge without going through the formal bankruptcy process. This article acknowledges some of these criticisms. It also suggests that, if third‐party releases become more widespread in the United Kingdom, this is likely to militate against the success of the United Kingdom as an international corporate restructuring venue. This is particularly the case if the underlying debt is disputed or gives rise to social or political controversy. The article is divided into five parts. After the first introductory part, the second part will examine how debts are restructured in the large corporate context in the United Kingdom and how third‐party releases are important for this endeavour. The third part will examine the equivalent position in the United States. The fourth part explores how the restructuring solutions currently on the table push up against the limits of contractually derived solutions. The final part concludes.

Corporate restructuring at Tata Steel Ltd

Research methodology The case was developed from secondary sources and interviews with a security analyst. The secondary sources include company annual reports, news reports, analyst reports, industry reports, company websites, stock exchange websites and databases such as Bloomberg and CMIE Prowess. Case overview/synopsis Increasing competition in product and capital markets has put tremendous pressure on managers to become more cost competitive. To address their firms' uncompetitive cost structures, managers may have to consider dramatic restructuring of their businesses. During 2014–2017, Tata Steel Ltd (TSL) UK considered a series of divestitures and a merger plan to nurse the company back to health. The case considers the economics of the restructuring plan. The case is designed to help students analyze a corporate downsizing program undertaken by a large Indian company in the UK and to highlight the dynamic role of the CFO and governance issues in family firms. It introduces students to issues surrounding a typical restructuring and provides students a platform to practice the estimation of value creation in a restructuring exercise. While some cases on corporate restructuring in the context of developed economies are available, there are very few cases written in an emerging market context. This case bridges that gap. TSL presents a unique opportunity to study corporate restructuring necessitated by a failed cross-border acquisition. It illustrates the potential for value loss in large, cross-border acquisitions. It shows how managerial hubris can prompt family firm owners to overbid in acquisitions and create legacy hot spots. In addition, the case can be used to discuss the causes of governance failures such as weak institutional monitoring and poor legal enforcement in emerging markets that could potentially harm minority shareholders. Complexity academic level The case was developed from secondary sources and interviews with a security analyst. The secondary sources include company annual reports, news reports, analyst reports, industry reports, company websites, stock exchange websites and databases such as Bloomberg and CMIE Prowess.

Public or private gatekeepers in non‐consensual debt restructurings in emerging jurisdictions

AbstractIn advanced jurisdictions, the choice of a non‐consensual debt restructuring is between a public or a private gatekeeper model where either the court or the licensed insolvency professional respectively approves a restructuring plan that binds dissenting creditors. In the United States, the only gateway is found in Chapter 11 of the Bankruptcy Code 1978, which requires court approval and gives the debtor a significant say in the outcome. In contrast, in the United Kingdom, there exist four gateways, only two of which require court approval (scheme of arrangement and restructuring plan), while the remaining two (administration and company voluntary arrangement) give significant powers to the insolvency practitioner to decide on the outcome. In emerging jurisdictions such as Mainland China and India, due to path dependency and lack of institutional capacity, the court‐supervised model is chosen as the only or primary gateway to legitimise non‐consensual restructurings though the insolvency practitioner has an important statutory role. Using the two jurisdictions as case studies, this article argues that such a choice has several initial benefits but also leads to several problems, including delays in the restructuring, does not necessarily improve substantive outcomes and does not adequately address the shareholder–creditor and creditor–creditor agency costs. This article proposes that for debt restructuring that involves the sale of the business as a going concern, the private gatekeeper should be able to decide on the sale and the distributions following pre‐bankruptcy entitlements. Recourse to the court as a public gatekeeper should only be used for reorganisation proceedings.

Pilkington on creditor schemes of arrangement and restructuring plans (3rd edition). By ChristianPilkington, WillStoner, London: Sweet & Maxwell. 2022. pp. xxxvii and 325. £315. ISBN: 978‐0‐414‐1002‐2

Pilkington on creditor schemes of arrangement and restructuring plans (3rd edition). By ChristianPilkington, WillStoner, London: Sweet & Maxwell. 2022. pp. xxxvii and 325. £315. ISBN: 978‐0‐414‐1002‐2

Restructuring as a form of settlement of problematic credit debt of banking institutions

Definitions of credit debt restructuring of banking institutions provided in several legal acts are summarized. They are reduced to changing the essential conditions of the current credit agreement to soften the requirements for the borrower in connection with his financial difficulties, the need to create favorable conditions for him to fulfill his credit obligations. The objects of restructuring under the credit agreement are: interest rate; forgiveness of part of the debt; his debt repayment schedule; terms and amounts of repayment of the main part of the loan, fees, etc. Restructuring of the bank is defined as a set of measures aimed at improving the financial condition, increasing the liquidity and solvency of the bank, carried out in the form of reorganization of the bank, change of owner, management, acceptance of debt obligations by the investor, rehabilitation, merger, division, merger, absorption at the stage, that precedes the recognition of the bank as bankrupt and the NBU's decision to liquidate it. Objects of restructuring can be: bank, enterprise, borrower's debts, tax debt, debt obligations, investment project, tax debt, debt obligations for borrowing, debt for issuing bonds. Restructuring of problematic credit debt is a type of restructuring of the borrower's debts by concluding an additional agreement with the borrower, settlement agreement, financial restructuring. The latter is the most common and is a form of economic recovery of borrowers who are in critical financial condition; changes in the conditions and repayment terms of credit obligations; ensuring borrowers' access to financing to restore their economic activity. Subjects and forms of financial restructuring are systematized. The essence of financial restructuring as an out-of-court procedure through negotiations between the borrower, his related persons and involved creditors is determined. The conditions for the borrower's participation in financial restructuring have been diagnosed, and the mechanisms for its initiation and implementation have been formalized. The responsibilities of the borrower in terms of the development and implementation of the restructuring plan are described.

The Procedure for Restructuring Budgetary Claims from Necessity to Reality

Abstract The present work approaches the legal institution of the restructuring of budgetary claims from the perspective of the procedure to be followed by the tax debtors interested in agreeing on the need to extinguish their budgetary claims with the desire to avoid the insolvency of the company. We bring up that the restructuring of budgetary claims was thought so as to offer a helping hand, especially to large companies in a situation of major financial difficulty. This present study aims to provide a synthetic picture of the steps to be followed in order to successfully complete this procedure. For this, the procedure is divided into three stages, namely the pre-stage, the procedure itself and the completion of the procedure. The acts to be performed at the pre-stage refer to the notification of the restructuring intention, the restructuring plan and the prudent private creditor test. The stage itself of the restructuring starts with the submission of the application to the tax authority, which will be settled by it either with a decision approving the restructuring or with a decision rejecting it, or with a decision approving a payment facility. Once the restructuring is approved, it will be carried out in accordance with the restructuring plan, under the supervision of the persons designated for this purpose. During its development, the restructuring process may undergo changes that will materialize either in the modification of the restructuring plan or in the modification of the payment facilitation decision, if such a facility has been approved. Whether there is a change in the restructuring process, or not, once it has started, it will have to be completed. If the restructuring plan is successfully implemented, the fiscal debtor’s budgetary claims will be extinguished and he will be able to go on with the economic activity for which he was established. If, however, the restructuring plan fails, the tax debtor risks being subject to forced execution by the tax authority, or even to request its insolvency, which could lead to the cessation of its existence.

Субординация основанных на кризисном финансировании требований контролирующих должника лиц: политико-правовые цели и актуальные проблемы

The article is devoted to such a basis for the subordination of the claims of a controlling person as financing a debtor in a state of financial distress. After analysing the main approaches to substantiating the need for subordination of claims based on crisis financing, the author comes to conclusion that the main political and legal goal of subordination is to compensate for the insufficiency of the company’s capital and, as a result, to increase the level of satisfaction of the claims of external creditors or increase chances of approval of a restructuring plan. Considering the criteria for a financial distress used in judicial practice, the author concludes that courts do not have a unified algorithm for assessing the debtor’s financial state at the time of financing and proposes to establish a presumption of a financial distress if the market value of the debtor’s net assets is lower than the registered capital or is negative.