Clifford Chance
Self-administration proceedings creditor support determines success - ILO
19 June 2015
The Insolvency Code allows for 'self-administration' proceedings, wherein a debtor retains possession and control of its assets while undergoing reorganisation. Self-administration proceedings are designed to maintain the trustworthy and capable management of the operating company while minimising outside interference. A debtor may apply for self-administration proceedings in order to maintain its ability to manage an insolvent company through the insolvency process, under the supervision of a court-appointed trustee. Self-administration proceedings can be used to liquidate an enterprise; however, they are normally used for a restructuring in connection with a court-driven insolvency process. In these situations, the management stays in place in order to maintain relationships of trust with customers, suppliers and employees – an essential factor for a successful restructuring.
Download File
Self-administration proceedings creditor support determines success - ILO
