Reorganization and Bankruptcy

Almost the biggest threat to your business interests of the insolvency and bankruptcy.

If you are a Creditor, you want your receivables to be protected or collected without delay. If you are a borrower you want to stay on market as long as possible and in order to accomplish that you have to take into consideration all options relevant to company, owners, stakeholders and employees.

When financial instability occurs, both debtor and creditor must do their best in order to come to solution and mutual agreement or if necessary to prepare themselves for bankruptcy procedure and eventual low suit.

Both cases seek the right guidance and your team needs someone with legal knowledge and experience, who will look after your interests.

Pre bankruptcy planning and consulting

An important aspect of the practice of law firm "Majkić & Majkić" focuses on avoiding or mitigating the negative effects of the liquidity crisis and other crises by planning and helping companies to overcome the inertia of a downward spiral while they still have an alternative to bankruptcy.

Pre bankruptcy planning and consulting refers to finding creative legal solutions that allow survival and creation of conditions for the continuation of normal business operations of the company that is providing them with financial crisis in order to avoid bankruptcy proceedings as well as taking legal steps to protect the property of the creditor or debtor prior to the bankruptcy proceedings,  if bankruptcy is inevitable.

Some of our activities:

• Legal analysis of receivables
• Legal advice and assistance in order to achieve a consensual financial restructuring through a redefinition of the debtor - creditor relationship between the company in financial difficulties and its creditors out of court proceedings before the bankruptcy proceedings
• Development of a premeditated plan of reorganization
• Conversion of assets
• Conclusion of the new loan agreement and the lease agreement
• Converting receivables into equity
• The implementation of the recapitalization
• Sale and pledged assets or rights
• Status changes (mergers and acquisitions, division of company ... )
• Change or termination of certain contracts
• Assignment of receivables
• Collection of debts
• Challenging and rebuttal unfounded claims
• Reduction of staff

Reorganization

Reorganization as a form of bankruptcy proceedings is an attempt to prevent the bankruptcy of the company that entered into a state of insolvency, or in a state where it can not fulfil its obligations.

According to the Law on Bankruptcy of the Republic of Serbia reorganization is performed if it provides a favourable settlement of creditors in relation to bankruptcy, especially if there are justified economic conditions for the continuation of the debtor's business.

The creditors will be settled according to the adopted plan of reorganization and redefinition of the debtor - creditor relationship, status changes of debtor or in any other manner provided in the plan of reorganization.

Lawyers from the law office "Majkić & Majkić" work to provide innovative and practical legal solutions for clients who are in financial difficulties. Our goal is to provide efficient and expedient legal responses in any situation of reorganization, which allows clients to reduce costs, increase value and  properly position themselves for continued market’s game.

The clients are provided with the following legal services:

• Assistance in negotiations with major creditors
• Legal aid and assistance in developing a plan of reorganization
• Presentation of a reorganization plan to the court hearing
• Legal consulting during financial and organizational restructuring
• Transfer of part or all of the assets to one or more existing or newly formed Society
• Conclusion of the new credit and loan agreements
• The implementation of the recapitalization
• Sale of non profitable or non-core assets
• Converting receivables into equity
• Change or termination of certain contracts
• Collection of overdue receivables
• Dispute and rebuttal unfounded claims
• Reduction of staff

Our engagement and advice is to help clients to reduce the time spent in reorganization.

Bankruptcy

Bankruptcy as a form of bankruptcy proceedings means the creditors collect their receivables by selling the entire assets of the debtor, or the debtor's as a legal entity.

Lawyers from the law office "Majkić & Majkić" up to now represented the interests of the bankruptcy creditors, bankruptcy debtors, bankruptcy assets, creditors' committee and excretory creditors and secured creditors in bankruptcy proceedings and litigation before the bankruptcy court, in relation to:

• Submitting a claim
• Initiate litigation on behalf of the creditor in order to determine disputed claim
• Representing creditors at the sessions of the creditors assembly and the creditors' committee
• Representing creditors in the examination hearing, creditors hearing, the hearing of the main distribution and the final hearing
• Realization of the rights of a secured creditor (recognition status, priority of collection)
• Protect the interests of excretory creditors (excretory request, excretory lawsuit... )
• Compensation of claims in bankruptcy proceedings
• Disputing legal transactions and legal actions of the debtor
• Purchase and sale of the entire property or part of the assets of the debtor
• Sales of debtor as a legal entity
• Legal advice and assistance to the trustee
• Protecting the interests of debtor/bankruptcy mass in litigation and other proceedings