Bankruptcy vs. Debts Restructuring?
01 March 2009Korporativnyi Jurist (In-house Counsel)
In the context of the global economic crunch and in anticipation of an increased number of corporate defaults in Russia, issues of debt restructuring and financial recovery of the affected business will become of more importance in the nearest future. This article covers the following:
Various benefits of debt restructuring as opposed to a formal bankruptcy in Russia;
Analyses different debt restructuring options in order to retain businesses and avoid bankruptcy proceedings;
Analyses applicability of international bankruptcy prevention practices in Russia;
- Summarizes the recent changes in the Russian legislation from which creditors and debtors may benefit in finding effective solutions in this critical situation.