yrityssaneerauksella

Yrityssaneeraus is a legal procedure in Finland designed to help financially distressed companies that are fundamentally viable to overcome their difficulties and continue their operations. It is a restructuring process that aims to prevent bankruptcy by allowing a company to negotiate a payment plan with its creditors. The process is initiated by the company itself filing a petition to the district court.

The core of yrityssaneeraus involves creating a formal restructuring program, which is then approved by the court. This program typically includes measures such as debt rescheduling, interest reductions, or even partial debt forgiveness. It can also involve operational changes within the company, such as cost-saving measures, divestment of non-core assets, or changes in management. The goal is to make the company's financial position sustainable and enable it to meet its future obligations.

During the restructuring period, which can last for several years, the company is protected from its creditors' enforcement actions. This allows the company time and space to implement the approved restructuring program without immediate pressure from creditors. An administrator is appointed by the court to oversee the process, ensure the program is followed, and represent the interests of both the company and its creditors.

Yrityssaneeraus is intended for companies that have a viable business model but are temporarily facing financial hardship due to, for example, economic downturns, unforeseen events, or operational challenges. It is not a solution for companies that are fundamentally unviable or bankrupt. Successful completion of a yrityssaneeraus allows the company to emerge from its financial difficulties as a functioning entity, preserving jobs and economic activity.