stabiilsusprogramm

A stabiilsusprogramm, often translated as a stability program or arrangement, is a legal framework designed to help financially distressed companies restructure their debts and operations. It is a judicial procedure that allows a debtor to propose a plan to its creditors for overcoming financial difficulties while maintaining its business activities. The primary goal is to achieve a sustainable financial situation, thereby preventing bankruptcy and preserving jobs.

The process typically involves the appointment of an administrator who oversees the company's affairs and works with the debtor and creditors to develop a viable restructuring plan. This plan may include measures such as debt rescheduling, asset sales, operational changes, or a combination of these. Creditors are then given the opportunity to vote on the proposed plan. If a sufficient majority of creditors approve the plan, it becomes binding on all creditors, including those who voted against it.

A key feature of a stabiilsusprogramm is that it can offer a moratorium or stay on creditor enforcement actions during the negotiation period. This breathing room is crucial for the company to focus on developing and implementing its recovery strategy without the immediate threat of liquidation. The program aims to balance the interests of the debtor, creditors, employees, and other stakeholders by providing a structured and supervised path towards financial recovery. Successful implementation can lead to the company's continued operation, albeit under potentially modified terms and conditions.