Solvenskapitalet

Solvenskapitalet, also known as insolvency capital or restructuring capital, refers to financial resources allocated to support companies facing severe financial difficulties or the risk of bankruptcy. The concept is primarily used in Sweden and other Nordic countries, where it is regulated under specific legal frameworks to facilitate corporate restructuring without immediate liquidation.

The purpose of solvenskapitalet is to provide temporary financial assistance to struggling businesses, allowing them to restructure their operations, repay debts, and regain financial stability. This capital is typically provided by creditors, investors, or government-backed funds, often under strict conditions to ensure responsible use. Unlike traditional loans, solvenskapitalet is designed to be repaid only if the company successfully recovers, reducing the risk for lenders.

In Sweden, solvenskapitalet is governed by the *Lagen om solvenskapital* (Solvency Capital Act), which outlines eligibility criteria, repayment terms, and oversight mechanisms. Companies seeking solvenskapitalet must demonstrate a viable restructuring plan, often requiring approval from creditors or a court. The capital is usually structured as subordinated debt, meaning it ranks below other creditors in claims on assets, further mitigating risk.

Solvenskapitalet plays a crucial role in preserving jobs, maintaining industry competitiveness, and preventing unnecessary bankruptcies. By offering a structured path to recovery, it balances the interests of creditors, shareholders, and employees while promoting economic resilience. The system is particularly effective in sectors where rapid restructuring is essential, such as manufacturing, retail, and technology.