INSOLVENCY AND RESTRUCTURING

Corneliu Belei and Carmen Antoinette Schmidt
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Corneliu Belei: SIF Banat-Crişana S.A., Arad,
Carmen Antoinette Schmidt: SIF Banat - Crişana S.A., Arad,

Theoretical and Applied Economics, 2009, vol. 12(541)(supplement), issue 12(541)(supplement), 665-669

Abstract: During a crisis period, many businesses become insolvent. Insolvency implies closing down a company through bankruptcy or reorganizing that company. In our present economical situation, closing down a business is totally disadvantageous. Because of the low demand on the market the firm's assets will be sold at a low price. Reorganizing implies approving of a plan, which offers a series of advantages to the creditors: the rescheduling of debts, the suspending of all judiciary actions, re-planning of activities, renegotiation of ongoing contracts, re-dimensioning of costs. After the period of maximum three years the company has a chance to become viable.

Keywords: vulnerability; insolvency; restructuring; bankruptcy; reorganizing plan. (search for similar items in EconPapers)
Date: 2009
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