We have already discussed in another detail what the debt restructuring agreement is, an effective procedure that allows a friendly agreement to be reached with the creditors for the extinction or redefinition of debts, avoiding bankruptcy. But how does debt restructuring work? We explain step by step how this tool for business crisis resolution actually works.
What are the indispensable requirements of a debt restructuring agreement
As we have said, the debt restructuring agreement allows a complex debt situation to be definitively resolved and the reorganization of the accounts established without going through bankruptcy. According to the art. 182 bis of the Bankruptcy Law – which governs this procedure – the agreement must be stipulated with creditors representing at least 60% of the loans, even if the debtor will also have to ensure the full payment of the creditors who remain unrelated to the agreement. Furthermore, the debt restructuring agreement must also indicate the timescales envisaged by the repayment plan, which cannot however be closed “more than 120 days from homologation in the case of credits already expired on that date or within 120 days of expiry, in the case of credits not yet expired at the date of approval ”. Furthermore, another indispensable requirement is that the feasibility of the agreement must be proven by a report drawn up by a professional, designated by the debtor.
How the debt restructuring procedure works
Once the negotiation phase with the creditors is concluded, the debt restructuring agreement passes to the homologation of the judge for the verification and the official recognition by the competent authority of the formal regularity of the formalities, but above all of the actual capacity of the restructuring plan of subjects, pay the balance of the receivables due from outside the agreement. Once deposited, the agreement must also be published in the Bank of Wemers’s business register so that creditors outside the agreement can file an opposition. Finally, within the set time frame, the court may issue a homologous judgment.
Now that you know how debt restructuring works, you can rely on professional advice in negotiating debts with banks and financial institutions to successfully conclude a simplified arrangement procedure. Thanks to the experience in the negotiating procedures and the ability to implement agreed plans fall tailored, the expert in banking and finance law GMB Finance help small and medium enterprises to effectively solve the extinguishment of debt.