Restructuring proceeding is a specific type of civil proceeding, which under Act No. 7/2005 Coll. on Bankruptcy and Restructuring and on amendments and supplements to some acts may commence only upon application.
Application for authorization of restructuring is entitled to submit debtor or creditor. The debtor is entitled to submit the application for authorization of restructuring, if he commissioned the trustee to prepare the restructuring opinion and the trustee in the restructuring opinion, not older than 30 days, recommended the restructuring. Likewise, the creditor is entitled to submit the application for authorization of restructuring in case he commissioned the trustee to prepare the restructuring opinion and the trustee in the restructuring opinion, not older than 30 days, recommended the restructuring, however, the law in case of submission of the application for authorization of restructuring requires the consent of the debtor himself. The trustee, which will recommend the restructuring of the debtor, may be only a person, which is registered in the register of trustees and has established office in the seat of the regional court in the district, to which belongs the competent bankruptcy court. Mandatory attachments of the application for authorization of restructuring are restructuring opinion, list of debtor’s liabilities, list of debtor’s property, list of debtor’s affiliated persons, last ordinary financial statement of the debtor and extraordinary individual financial statement of the debtor, if it was made later than the last ordinary financial statement.
Restructuring proceeding can be divided into the following stages:
- stage before submitting application for authorization of restructuring, stage of preparation of the restructuring opinion
- stage from submission of application for authorization of restructuring until commencement of the restructuring proceeding
- stage from commencement of the restructuring proceeding until authorization of restructuring
- stage from authorization of restructuring until approval meeting of creditors
- stage from approval meeting of creditors until completion of restructuring proceeding
- stage after completion of restructuring proceeding, stage of fulfilment of restructuring plan under eventual existence of supervisory administration
Restructuring is a legal institute, by which can be solved the existing or imminent insolvency of entrepreneurs. The aim of the restructuring proceeding is to help the debtor, to which is in this proceeding granted protection against creditors, in particular by suspension of execution proceedings, while during the ongoing restructuring proceeding it is allowed him to continue in business undertaking. The result of the restructuring is a partial satisfaction of creditors’ claims, which must be however higher that it would be in case of announcement of bankruptcy on debtor’s property, while creditors’ claims filed in restructuring cease to exist in the remaining part. The debtor after successful restructuring can continue to perform its business undertaking.