Insolvency and reorganization

The global economic crisis has imposed difficulties to a number of businesses. The outcome has been an increasing number of engagements for closing down of different forms of establishments, initiation of insolvency procedures, as well as intra-group reorganizations and restructuring activities.

With our specific and expert knowledge of the regulatory framework, as well as hands on experience on complicated cases, we are valuable advisor to our clients, who can protect their interests to the highest possible extent against the solvency problems of their contractors and business partners.

You can rely on us from the diligent scrutiny of the legal status of your potential future contractors to on-going protection of your interests throughout the entangled insolvency proceedings initiated against your business partners and debtors. We also offer practical and commercial advice on a full range of contentious and non-contentious issues encountered in insolvencies.

Our lawyers have abundant experience in corporate restructuring and reorganization. We provide full scope advice and assistance, which comprises:

  • Preparing comparative overview of the possible options for corporate restructuring and their potential implications on the affected businesses, including preserving licenses and authorizations, impact on contractual relations with third parties, transferring personnel and major tax implications;
  • Preparing an action plan and time estimates for the reorganization, allowing accurate internal estimations by the management;
  • Providing practical assistance in implementing the chosen scenario for reorganization, including drafting of the relevant corporate documents and commercial agreements, obtaining the required government approvals, performing the necessary registrations, and
  • Ensuring successful completion of the restructuring process and setting up the legal parameters for the operation of the new forms of establishment.

Recent work:

Stopping the improper use of insolvency proceedings

A client of our dispute resolution team (led by Kamen Shoylev and Yordan Neshkov) was recently the subject of an indirect claim by a Bulgarian bank with which this client has been engaged in a multi-stage dispute. Unusually, the bank acted through a vehicle registered in an African state, which made an unfounded claim in the tens of millions of euros against our client and sought the commencement of judicial insolvency proceedings against this client. The offshore vehicle was chosen to isolate the bank from liability and create certain evidential difficulties for our client's representation.

NBLO succeeded in terminating the insolvency proceedings, with direct loss fully awarded to our client. A second claim to recover our client's indirect losses is currently under way.

Where targeted in this way through insolvency proceedings, a company may be prevented from trading properly (e.g., by suffering restrictions on its financing or being unable to participate in public procurement).

Through our considerable experience in insolvency litigation, both entirely domestic and where there are European and cross-border elements, we are ideally placed to assist clients in resisting such attacks and recovering the real and considerable losses that may be suffered.

© New Balkans Law Office 2018