The activities for financial recovery of the enterprise are carried out in three stages: the beginning of the procedure, recovery measures and determination of the results.
It should be noted that this activity is an optional part of bankruptcy. Recovery is resorted to only if the following conditions are met:
There is a bankruptcy overseas chinese in worldwide data petition filed with the court by a legal entity, creditors or executive bodies.
There is strong evidence that the debt can still be repaid. This includes bank guarantees, mortgaged property, surety, etc.
The consent of creditors to carry out the recovery procedure has been received.
Recovery is not automatic, but only after receiving consent from creditors. You need to have a flawless financial plan to secure their support.
After the arbitration court makes a decision on the creditors' meeting, an administrative manager is appointed. Management is still on the shoulders of the company's director, but the process of enterprise recovery requires strict control, which will be performed by the manager.
During the procedure, the head of the company still has extended powers with minor restrictions. Without confirmation of the administrative manager, it is not allowed to:
enter into transactions with the director’s obvious interest (for example, it is impossible to buy a service apartment);
make a decision on reorganization (for example, you cannot merge with another company).
Such transactions are considered invalid by the court and can be cancelled.
To which enterprises is the financial recovery procedure applied?
If the goals of financial recovery of the enterprise are clear and simple, then the method must be chosen carefully. This is done by the debtor and creditors. The manager only advises which option seems logical from his point of view.