How long does it take to restructure a company?

The final stage of the simplified restructuring procedure is the submission by the debtor of an application for approval of the arrangement to the competent court. The provisions of the Law – Shield 4.0.indicate that if within 4 months from the date of making the announcement no application for approval of the arrangement is submitted to the court – the proceedings are discontinued by operation of law. At the request of the debtor, creditor or any other person with a legal interest, the court will issue an order declaring the discontinuance of the proceedings by operation of law. Essentially, then, the debtor has four months to come to an agreement with his creditors on the terms of the arrangement and file the appropriate application with the court. Failure to apply within this timeframe results in the cessation of protection from enforcement and all the benefits associated with simplified restructuring.

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