Corporate Restructuring
Merino Law Firm provides legal advice to companies undergoing corporate restructuring and helps businesses create breathing room, establish structure, and develop a plan for the future.
Specialists in corporate restructuring
Evaluation and Application
Restructuring and Stabilization
Negotiation and settlement
Corporate reorganization can be an option for companies that fundamentally have a viable business but have encountered financial difficulties. During the reorganization, the company is granted protection from enforcement actions and a deferral of payment for debts incurred prior to the reorganization. This creates breathing room to restructure the business, divest unprofitable operations, renegotiate contracts, and negotiate with creditors with the goal of restoring the company’s profitability. Unlike bankruptcy, the aim is to allow the business to continue operating and to prevent assets from being unnecessarily lost. If carried out correctly, a reorganization can preserve jobs, strengthen the prospects of payment for creditors, and give the company better conditions to return to a sustainable and competitive business. For a corporate reorganization to be a realistic option, it is normally required that there is a part of the business that can continue and that there is sufficient liquidity to carry out the process. In many cases, this also involves a public composition, which means that old unsecured debts are written down if a sufficient number of creditors accept the proposal. A successful reorganization therefore requires not only legal precision, but also business acumen, speed, and a clear plan for how the business will be stabilized.
Leonardo Merino’s client service and overall level of service are exceptional. His sophistication and commercial acumen are outstanding. Leonardo Merino is deeply engaged in the market. He is highly knowledgeable, deeply interested, and strongly business-oriented. He has an excellent reputation and is undoubtedly a rising star in the field of insolvency law.
A reconstruction is about more than just buying time
When handled properly, corporate reorganization can save more than just a company. It can preserve value, secure jobs, improve creditors’ chances of being repaid, and give viable businesses a future. For us, reorganization is a process in which legal expertise, business acumen, and integrity are translated into tangible benefits for companies, creditors, and society.
Frequently Asked Questions
Here we answer frequently asked questions about Merino Law Firm, how we work, and what opportunities are available to you as a student.
Contact usOnce the reorganization proceedings have commenced, the company undergoing reorganization is prohibited from paying old debts, i.e., debts that arose prior to the date of the application for reorganization. The decisive factor in determining when a claim is deemed to have arisen is the date on which the service was provided or the goods were delivered. The date the invoice was issued is therefore not decisive.
If you have issued an invoice that covers both the period before and after the date of the application for reorganization, please contact the company’s finance department so that the invoice can be allocated to the appropriate period.
As a supplier, you are required, at the company’s request, to continue delivering in accordance with the contract during the reorganization proceedings. As a general rule, deliveries made during the reorganization proceedings will be paid for in cash or in advance by the company.
A reorganization attorney assists the company in assessing whether reorganization is feasible and appropriate, preparing the application, and providing legal advice throughout the entire process. This may include matters related to creditors, contracts, composition agreements, the liability of company representatives, and other commercial law issues that arise in a financially strained situation.
The representative plays a key role throughout the entire reorganization process. Prior to filing the petition, the representative assists with financial information, a liquidity plan, and supporting documentation for the petition. During the process, the representative participates in reconciliations, creditor meetings, payments, and composition negotiations.
If you would like to learn more about the role of a representative during a reorganization proceeding, please read our article " The Role of a Representative During a Reorganization Proceeding."
The process typically begins with an assessment of whether the conditions for reorganization are met. If so, an application is filed with the district court. During the reorganization, the company is given time to stabilize its operations, address its debt situation, and create the conditions necessary for continued operations.
If you’d like to learn more about the reorganization process and its various stages, you can read our article “The Different Stages of Corporate Reorganization.”
Corporate restructuring may be appropriate if the business is fundamentally viable but has encountered financial difficulties. An initial assessment must be made of the business’s prospects, its liquidity, and its ability to implement the measures necessary for the company to return to profitability.
Merino helps you through financial difficulties
We assist companies facing financial difficulties or liquidation. We offer advice on claims or demands under the provisions of the Bankruptcy Act.
