Bankruptcy, liquidation, forced deregistration
While conducting economic activities, temporary or permanent payment difficulties may arise, or a typically administrative omission may lead to the termination or dissolution of a company.
Our Firm provides its clients with full legal consultation and representation in the following procedures, whether on the debtor's side or on the creditor's side.
Bankruptcy proceedings
The goal of such proceedings is to end a debtor's insolvency and restore the debtor's operations.
For this purpose, the debtor, who is insolvent or is in a situation that threatens with insolvency, receives a respite of payment (protection from bankruptcy) and has up to 1 year to conclude a bankruptcy agreement with the creditors and continue its operations.
Procedure of reorganization
This is a procedure conducted in harmony with the economic considerations, and its aim is to improve the financial, liquidity and solvency situation of a company struggling with financial difficulties, and thus ensure its further operation.
Liquidation process
Liquidation process is a process for the liquidation of insolvent business entities without legal successors. Its purpose is to satisfy the creditors in a manner specified by the laws.
Forced deregistration procedure
The purpose of a forced deregistration procedure is for the court of registration to permanently deregister companies that operate in violation of the law, or the dormant companies from the register of companies.
The reason for the forced deregistration is typically that the company does not fulfil a legal obligation (failure to submit a tax return, failure to publish a report), and is typically initiated by the National Tax and Customs Administration (NAV) by deleting the tax number.
In the case of forced deregistration, the company, subject to the forced deregistration, has 90 days to restore its operations to be lawful again.