Out-of-court debt restructuring is a way of solving problems in a company that for some reason is not able to fulfill its contractual obligations. It is an opportunity to save the business. Restructuring for companies in financial difficulty enables them to continue their business and successfully survive economically difficult times in the company. The process is more effective than litigation or insolvency, because the dispute is resolved more quickly and reduces the losses incurred when settling disputes in court.
Restructuring is a restructuring plan developed by the debtor and RALUM, based on debt restructuring proposals based on a business plan. The bank includes the action of the debtor addressed to the financial problems. There are several processes that can be envisaged in the plan: sales of assets (including sales of unprofitable business), change of management, attraction of capital, debt capitalization, netting of netting and other matters.
Restructuring for individuals is a change in credit conditions if the client is in financial difficulty, but the case is not yet at the trial stage. In this situation, a loan that is not paid can be restructured. This means that various changes to the loan conditions are made, in order to allow the client, in agreement with the Creditor, to find a solution for further payment of the loan. Restructuring for individuals includes extending the loan repayment term, changing the type and timing of repayment of credit, and other conditions that enable the client to continue to fulfill.