Corporate Restructuring and Reorganisations/Insolvency
Companies in financial distress need to act quickly and decisively to preserve the value of the business, buy time, achieve stability, seek relief and avoid a possible bankruptcy. In order to rescue, rehabilitate or reorganise their business companies in financial distress need professional legal assistance. At Lorenz, we have the necessary range of legal and commercial skills drawing on the broad and varied expertise of lawyers from our different practice areas (corporate, corporate finance, commercial, employment) to assist companies in financial distress in their restructuring efforts. For tax issues, we closely cooperate and provide an integrated service together with recognized tax law boutiques.
Lorenz has a unique approach to handling restructuring work. Given the absence of formal departments within the organisational structure of Lorenz, we are able to customize inter-disciplinary teams to match the requirements of our clients with one contact partner which coordinates the work of the different members of the team.
Our priority is to provide our clients with pragmatic restructuring solutions which enable them to achieve their strategic business goals taking into account the sensitive political and social issues that may come into play when restructuring a company and trying to rescue it from an insolvency situation. A thorough understanding of the sectors in which our clients operate means that we can provide them with a realistic and informed approach in respect of restructuring operations or formal insolvency proceedings.
Lorenz assists companies in financial distress with the restructuring of their financial obligations and cost-cutting efforts, such as
- Taking the necessary corporate steps required by the Kyrgyz CivilCode;
- Implementing refinancing measures;
- Restructuring and rescheduling of debt and collateral, including negotiations with banks and other creditors;
- Negotiation and structuring of all types of surety and guarantees;
- Protection against claims for seizure;
- Sale of assets, including real estate;
- Setting up of shared services and outsourcing arrangements; and
- (Collective) dismissal of personnel, including consultation and negotiation.
Lorenz assists companies in financial distress that decide to voluntarily cease their operations and to liquidate their company, e.g., with
- Taking the appropriate corporate steps to liquidate their company;
- Selling their assets, terminating their contracts and settling their outstanding debts;
- Structuring liquidation proceeds in the most tax-efficient manner; and
- Advising on the collective dismissal of personnel, including the consultation and negotiation with personnel.
Judicial Composition Proceedings
Lorenz guides companies in financial distress through judicial composition proceedings (which may be compared to pre-bankruptcy Chapter 11 restructuring in the United States)
- Representing them in their negotiations with the court-appointed commissioner and in the ensuing court proceedings;
- Helping them to understand the rights and obligations they have as debtors;
- Drafting and negotiating a recovery and payment plan with lenders, suppliers and creditors; and
- Protecting directors and officers from liability claims.
In case bankruptcy becomes unavoidable, Lorenz assists companies in financial distress, including:
- Advising them on the procedural aspects of bankruptcy-related proceedings;
- Advising them on their rights as debtors or creditors;
- Advising them on liability issues;
- Negotiating arrangements or plans of reorganisation with creditors;
- Designing strategies for recovering assets or combating fraud; and
- Developing tax structures and providing bankruptcy tax advice (in cooperation with the tax law partners with whom we closely cooperate).
Distressed Mergers and Acquisitions
With increased frequency, financial restructuring operations are being implemented by various forms of M&A transactions. Lorenz assists companies in financial distress acting as sellers but also investors, financial institutions and sellers in a variety of industry sectors with corporate, regulatory, competition law, employment, and taxation aspects in all kind of distressed mergers and acquisition transactions, including:
- Asset sales;
- Out-of-court transactions; and
- Distressed MBO’s.