Judicial reorganization proceedings imply the drafting, approval, implementation, and observance of a reorganization plan setting forth one or all of the following: the operational and/or financial reorganization of the debtor, the corporate reorganization of the debtor by changing the shareholding structure, and reducing activities by way of disposal of assets from the debtor’s estate, etc.

The reorganization plan may entail either the restructuring of the debtor with the continuation of its activity or, as an alternative, the disposal of certain (or even all) assets from the debtor’s estate, or a combination thereof. Further, the reorganization plan may entail amendments to the debtor’s constitutive act, without the approval of the debtor’s shareholders.

Our team has successfully drafted, proposed and implemented along with the other participants in the insolvency procedures of several reorganization plans Last ones referred to the energy sector and to plastic manufacturing.

Generally, a reorganization plan may be advanced by the following persons: (A) the debtor, with the approval of its sole shareholder or the shareholders‘ meeting (B) the judicial administrator, or (C) one or more creditors holding together more than 20% of the aggregate amount of all payables.

The reorganization plan shall mention the prospects for a recovery in light of the possibilities and the specifics of the debtor’s business, the availability of financial means as well as the market conditions for the debtor’s line of business. The reorganization plan shall also indicate the creditors’ categories, the quantum of their debts, and the payment plan for said debts.

The reorganization plan is subject to approval by the creditors and to confirmation by the syndic judge.

During the confirmation of a reorganization plan and full consummation thereof, the debtor’s estate is managed by the special trustee under the supervision of the judicial administrator.

The reorganization shall be terminated by the court either by allowing the debtor to recommence full commercial activities or ordering the commencement of bankruptcy proceedings (in case of non-performance of the reorganization plan).