Accelerated reorganisation proceedings
The aim of the accelerated reorganisation proceedings is ensure a quicker approval of your company’s reorganisation programme. Your company may apply for the proceedings if it meets certain conditions (such as open cooperation with its creditors). A draft reorganisation programme is prepared in cooperation with your company and its creditors and approved by the court.
Using the accelerated reorganisation proceedings, you can have your company's reorganisation programme approved more quickly. In may only take one day for a court to approve it, compared with an average of nine months for the ordinary reorganisation proceedings. Quick proceedings will reduce the negative impacts on your company's operations and reputation arising from the process.
In the accelerated reorganisation proceedings, the draft reorganisation programme is more or less finalised before it is submitted to the court. The draft is prepared by an outside person who also submits it to your company's largest creditors for their approval. A well-prepared draft means substantially quicker court proceedings.
In the accelerated reorganisation proceedings, cooperation with the creditors is on a transparent basis. The proceedings take place under the supervision of your company's creditors and the process is coordinated by a person approved by them. This means that it is easy for the creditors to commit themselves to the reorganisation. Commitment of the creditors and an atmosphere encouraging cooperation also make it easier for your company to play an active role in the debt arrangements.
The same basic requirements apply to the accelerated reorganisation proceedings and ordinary corporate reorganisation. Your company must be insolvent or in danger of becoming insolvent. Its business operations must, however, be fundamentally profitable and the insolvency problem must be solvable on a long-term basis.
It is also required that cooperation with your company's creditors is on a transparent basis. Your company must contact its largest creditors as soon as the financial difficulties emerge. The largest creditors must also agree with you on the reasons for the payment difficulties, on the reorganisation potential of your company and the reorganisation methods.
Getting into accelerated reorganisation also requires that your company has enough funds to repay new debts and to cover daily expenses. Your company's financial administration, bookkeeping and reporting systems must also be up to date.
You should discuss the reorganisation plans with the largest creditors of your company. If the creditors are in favour of the reorganisation you can choose the person drafting the reorganisation programme and the financial auditor reviewing the operations of your company.
Also contact the other creditors of your company to get their approval for the accelerated reorganisation proceedings. Set a timetable for the audit of your company's operations, for the preparation of the draft reorganisation programme and the submitting of the reorganisation application to the court.
The financial auditor audits your company and gives an opinion of its financial situation. A draft reorganisation programme is prepared in cooperation with your company and its creditors.
The person drafting the programme seeks court approval for the start of the reorganisation proceedings. After all creditors have approved the draft reorganisation programme, the person responsible for its drafting may request quick approval of the programme. The accelerated reorganisation process may only take one day.