Errors made during the restructuring procedure
In the course of restructuring proceedings, numerous errors that can be avoided are usually made.
It seems that all parties involved in the restructuring proceedings care about the speed and efficiency of carrying out all necessary activities and the final positive conclusion of the process. Nevertheless, in the course of ongoing restructuring, mistakes are often made that, from the expert perspective, can be avoided.
First of all, there is passivity on the part of creditors involved in the restructuring proceedings. Second, creditors often believe that they can submit claims themselves. Experts emphasize that creditors may indeed question the list of claims prepared by the debtor together with the advisor / supervisor / administrator, but this should be done properly and preferably with the support of a restructuring advisor. Thirdly, creditors, driven by the will to recover all their debts, immediately reject arrangement proposals which indicate that they will not be fully satisfied. However, it is necessary to realistically analyze the debtor’s financial capabilities and take into account all feasible scenarios. Only the knowledge obtained in this way allows for a real evaluation of the proposal. Fourthly, creditors often receive quick repayment of liabilities, and this is not possible during the ongoing restructuring. Fifthly, creditors often decide to initiate court proceedings against the debtor, which generates additional costs. Sixth, it is just as often the case that creditors initiate enforcement against the debtor, and this is clearly prohibited during the ongoing restructuring. Seventh, creditors should remember to exercise all due diligence when voting on the arrangement.