The number of restructurings is increasing
The number of restructurings is increasing very rapidly.
Entrepreneurs most often decide on simplified restructuring proceedings. This type of restructuring has been invariably the most popular for almost a year. This is confirmed by the data. In the last quarter, 91% of all open restructuring proceedings were simplified ones. Although this is largely an out-of-court procedure, the court is involved in the last stage of the procedure. At present, the courts are not keeping up with dealing with cases for approval of the arrangement. The court’s decision should be expected to take about nine months, which is twice as long as the four-month period that the debtor and the restructuring advisor have to carry out the simplified restructuring.
