When it comes to corporate crisis, insolvency, and restructuring, we are the ideal contact for all issues relating to (cross-border) insolvency law for

• shareholders of insolvent companies or those in crisis

• their managing directors or board members,

• insolvency administrators,

• banks and

• creditors of insolvent companies.

If companies are in economic turmoil, legal support should not wait until it is too late. In many cases, professional external advice from appropriately specialized lawyers can avert further damage to companies especially in the context of insolvency proceedings. This involves avoiding personal risks for managing directors or board members of companies in crisis. Under Czech law, they not only face possible criminal charges, but also personal liability for outstanding debts. It is particularly important to prevent a crisis from turning into insolvency by providing comprehensive advice on company law, employment law and tax law at an early stage.

We will examine the options and risks for you, plan and arrange everything necessary to ensure that a crisis does not turn into insolvency - in cooperation with your tax advisors and auditors or with reliable partners that we can provide you with.

Is your company in a financial crisis? Do you need support to get out of this? Feel free to contact us!

Czech law basically recognizes two types of insolvency proceedings for companies: Bankruptcy and restructuring/reorganization.

If a company is insolvent or threatened with insolvency, insolvency proceedings are opened at the request of the company itself or by a creditor´s application. The management of the company is legally obliged to file for insolvency immediately in the event of insolvency - otherwise those responsible may face personal liability towards creditors as well as criminal charges.

In the course of the actual insolvency proceedings, it is then possible to choose the appropriate procedure for the specific situation. Either restructuring is sensible and possible or liquidation is the better option.

The aim of bankruptcy is to liquidate the company's remaining assets and satisfy creditors to the maximum amount possible. The shareholders are often left empty-handed, as claims that are not satisfied are extinguished. Bankruptcy only makes sense if there is no prospect of a successful restructuring. The filing for bankruptcy becomes effective once the bankruptcy order has been published in the insolvency register.

However, if there is a chance of rescuing an insolvent company, Czech insolvency law provides for restructuring/ /reorganization to enable the company to continue.

The company is restructured so that it is once again able to settle claims and operate. Business operations are initially continued based on a restructuring plan drawn up by the insolvency court and creditors monitor its implementation.

Do you need reliable support in insolvency proceedings? Feel free to contact us!

If your company is in crisis or insolvent, we will do everything we can to help you make the best of the situation with the following services:

• short-term crisis advice,

• legal analysis of the current company situation,

• advice and suggestions for managing directors and board members,

• preparation, implementation, and coordination of the entire bankruptcy or restructuring process,

• filing of claims and representation at creditors' meetings,

• search for and selection of suitable auditors, tax advisors and insolvency administrators.

It goes without saying that we advise and represent companies and their management from all industry sectors on (international) insolvency law and restructuring. And yet, over the past 25 years, it has become apparent that we primarily advise companies from the following sectors

• real estate,

• financial services / banking,

• IT (hardware and software, shared service centers),

• energy industry,

• transportation and

• processing/manufacturing industry,

and therefore we have specific in-depth insights and experience in these sectors.