On 26.12.2008 the new Reorganisation Act entered into force aiming to fill the gap in Estonian legislation and enable the undertakings facing economic difficulties to avoid the usually „irrevocable“ course of the bankruptcy proceedings for the liquidation. The new law offers temporary protection with regard to the claims of the creditors, in order to make necessary rearrangements in the company and restore profitable and sustainable activities.

The rearrangements shall be carried out according to the reorganisation plan approved by the majority of the creditors and as well as the court. The measures of reorganisation include among others cutting of costs, sale of assets, reduction of the claims of the creditors and extension of terms for the performance of obligations or fulfilment of claims in instalments.

During the reorganisation proceedings, the undertaking will be assisted by the reorganisation adviser appointed by court.

Contact: Liina-Maarja Uuemõis