Bankruptcy
Management of any company – whether it be a small firm or a large business – requires managers to make decisions analyzing not only the obvious consequences of closing certain transactions, business extensions or divisions, etc., but also long-term outcomes, possibly, non-obvious at first sight. One of such serious consequences could be the bankruptcy of the company. It will not be an exaggeration to say that it is more effective (and by the way – much more economically profitable) to prepare for any problem in advance than to “solve problems as they arise.” The necessity to assess all potential risks in advance is caused, primarily, by the fact that with the beginning of bankruptcy proceedings neither business owners nor firm directors can make any management decisions and influence the future of their business. This is so, as from the moment bankruptcy begins, business management passes into the hands (in whole or in part, depending on the bankruptcy procedure stage) of an arbitration manager / an external manager.
In addition, filing an application for adjudication of debtor bankruptcy immediately casts discredit on many facts of the economic activity of such a company. For example, there are risks of detecting signs of intentional bankruptcy, choosing a tender manager “in favor” of creditors unfriendly to business owners, risks of challenging suspicious transactions and risks of bringing business owners or a director to subsidiary liability. Therefore, the preventive work of KDZ&partners’ lawyers – pre-bankruptcy due diligence – will help to mitigate such risks as much as possible.
For a long time the KDZ&partners’ team has been involved in supporting the bankruptcy proceedings of legal entities and individuals and disputes related to them. Our lawyers will assess the presence or absence of intentional bankruptcy evidence in order to avoid criminal prosecution; examine payable accounts for the possibility of entering into agreements with creditors; assess the assets condition and their “clean title”; determine the strategy and tactics of bankruptcy management: whether it is necessary to obtain the creditors’ support, whether it is possible to reduce the risks of initiating bankruptcy, whether it is advisable to initiate bankruptcy on your own, etc. After a careful study of all company details and evaluation of documents, KDZ&partners’ specialists will not only answer all the questions, but also prepare a plan of action and provide full legal support, the purpose of which will be the maximum protection of your business. As a rule, companies apply for a bankruptcy service of legal entities in case the credit burden becomes unsustainable and prevents the continuation of normal activities. Individuals mostly turn to such a scenario to get rid of loans, excessive debts to banks and communication with collection agencies. However, creditors and borrowers often are very risky due to unfair actions of partners. KDZ&partners’ lawyers, in their turn, help to protect the interests of a client, no matter on which side of the dispute he or she is.
