Reconstruction and insolvency
It is natural in a market economy for certain companies to find themselves in financial difficulties caused, for instance, by unforeseen events, market changes or some kind of irregularity. Regardless of whether it’s your own or someone else’s business that is in financial straits, we can help you navigate the intricate rules of insolvency law and, sometimes with external financial and strategic consultants, provide solution-directed advice to make sure that the situation is handled in the best possible way. The earlier we intervene, the greater the chances we have of saving a struggling business.
We are one of Sweden’s leading law practices in the fields of restructuring and insolvency and have handled many of Sweden’s largest cases of corporate restructuring and bankruptcy. We offer services in a great many fields, including:
- Composition with creditors and other voluntary arrangements: By giving advice on and explaining the consequences of different options to representatives of a company in crisis and its creditors, shareholders and other stakeholders, we create the optimum conditions for reaching voluntary arrangements that avoid unnecessary loss of value.
- Corporate restructuring: To companies that have a viable core, the Swedish act on corporate restructuring has several powerful legal tools that can help them improve their balance sheets and wind down unprofitable lines of business. Sometimes it can be enough to have temporary legal protection against executive measures to be able to carry out an operational reorganisation of the company. Restructuring is not only about saving the debtors’ businesses but also, importantly, about providing the creditors with a preferable option to bankruptcy. We have extensive experience of corporate restructuring and in the vast majority of cases we take on. We manage to implement the restructuring plan and follow it through to conclusion.
- Bankruptcy: While bankruptcy is often seen as the last resort for companies with financial problems, it can also be an effective way of restructuring them or of carrying out a compulsory liquidation. We have handled thousands of cases as official receivers in bankruptcy with a satisfying outcome for the creditors involved.
- Liquidation: Some companies need to be liquidated, even if they are not unprofitable or struggling financially. We provide guidance on issues related to liquidation and are regularly appointed as liquidators for companies.
- Liability: Both after and ahead of a decision, a struggling company’s shareholders, board and management all often need guidance on their personal liability. We provide advice and support needed on such matters.
- Creditors and other external stakeholders: Individual claimants and other stakeholders often need advice on how to handle a situation, especially ones involving large companies with financial problems in which high values are at stake. We help with everything from assessing potential liquidity outcomes to assisting with creditor bankruptcy applications, reviewing securities and otherwise representing external stakeholders in liquidity and insolvency situations.