Financial recovery is introduced after observation by a court decision, and the founders of the debtor company, the owner or creditors should:
file a petition for financial recovery with the court;
provide an appropriate plan or provision;
develop a debt repayment schedule.
If these three documents are available, the arbitration court has the korean whatsapp number right to introduce a financial recovery regime; otherwise, a decision is made on external management or even bankruptcy proceedings if the company’s financial situation is recognized as hopeless.
Which debtors may qualify for financial recovery?
This procedure is applicable to various types of organizations: joint-stock companies, limited liability companies, farms, business partnerships and partnerships, state and municipal unitary enterprises, etc. State-owned enterprises, religious organizations, political parties, and institutions are not subject to bankruptcy, and therefore, financial recovery.
Also, financial recovery is not used for individual entrepreneurs - for them, a legal mechanism for recognizing insolvency is provided, as for individuals.
Is it possible for a court to refuse to order financial recovery of an enterprise?
Yes, the court will refuse this procedure if at least one of the grounds mentioned above is absent. Also, the presence of a corresponding decision of the creditors' meeting is mandatory, that is, they can prevent the debtor from using this measure.
In general, the institution under consideration is designed to restore the company's solvency and prevent its bankruptcy, so that both the interests of the debtor and the creditors are taken into account here. It remains to be hoped that more and more examples of successful application of financial recovery of enterprises will appear in Russian business practice.
