What Moldova restructuring options exist for a company with liquidity problems and unpaid debts?

Hello,

I understand you are facing a difficult situation with your company's liquidity and unpaid debts. Navigating financial distress can be challenging, but Moldovan law provides several formal restructuring options that can help your business recover.

Restructuring Options Under Moldovan Law
Under Moldova's Insolvency Law No. 149/2012, there are two primary formal restructuring procedures available for companies facing financial difficulties:​

Standard Restructuring Procedure: This is a court-supervised process initiated after an insolvency case has been opened. It allows the debtor, an insolvency administrator, or creditors to propose a restructuring plan.​

Accelerated Restructuring Procedure: This is a faster, hybrid process where the debtor can notify the court of negotiations with creditors and submit a pre-approved restructuring plan.​

Beyond these, other corporate reorganization methods include mergers, divisions, and transformations.​

The Restructuring Process
The general steps for a formal restructuring are as follows:

Initiation: The process can be started by the debtor company filing for insolvency and stating its intention to restructure. Creditors with a legitimate interest can also initiate insolvency proceedings.​

Restructuring Plan: A comprehensive restructuring plan must be developed. This plan can propose various actions, such as operational and financial adjustments, changes to the company's share structure, or the sale of certain assets.​

Creditor Involvement: The restructuring plan must be presented to and approved by a meeting of creditors. Different classes of creditors (e.g., secured and unsecured) vote on the plan separately.​

Court Confirmation: After the creditors approve the plan, it must be submitted to the insolvency court for confirmation. The court's confirmation makes the plan legally binding.​

Key Roles and Timelines
Insolvency Administrator: An authorized insolvency practitioner is appointed to oversee the process. The debtor typically regains control of asset administration under the administrator's supervision once the plan is confirmed.​

Timeline: A standard restructuring plan is generally executed over a period of up to three years. In exceptional circumstances, and with creditor approval, this can be extended for an additional two years. For an accelerated procedure, the court can set a deadline of up to 30 days for a plan to be proposed.​

Required Documentation
While the specific documents may vary, initiating the process generally requires submitting an application to the court with supporting evidence, including notifying the State Tax Administration and company members.​

I specialize in providing guidance on these matters. If you would like to discuss your company's specific situation in more detail and receive tailored advice, I can offer a consultation via WhatsApp at a competitive rate. Please let me know if you are interested.