Open AccessRestructuring of the Debtor // Restrukturiranje dužnika
Author(s) -
Vladimir Čolović
Publication year - 2018
Publication title -
godišnjak fakulteta pravnih nauka
Language(s) - English
Resource type - Journals
eISSN - 2232-9684
pISSN - 2232-9668
DOI - 10.7251/gfp1808005c
Subject(s) - restructuring , debtor , creditor , bankruptcy , debt restructuring , business , insolvency , productivity , finance , order (exchange) , economics , financial system , accounting , debt , political science , law , economic growth , sovereignty , sovereign debt , politics
Restructuring can be defined as a set of measures that are applied in an economic entity (company or entrepreneur) that has fallen into financial difficulties. These measures do not apply only to the field of finance, but also to the entire business of the company or entrepreneur. We distinguish financial and operational restructuring, which are the two most common forms of this institute. Financial restructuring refers to redefining the relationship between company as a debtor and a creditors. On the other hand, operational restructuring involves optimizing the production process, increasing productivity, eliminating inefficiencies, and other measures. Also, we distinguish formal (court proceedings) and informal (debtors-creditors agreement) approach in defining restructuring. In Republic of Srpska, Act of Bankruptcy regulates the restructuring process in which the debtor’s status is defined, as well as its relationship with the creditors, in order to continue the activity. This paper criticizes the method of regulating this institute, bearing in mind that there is no clear difference between this procedure and the reorganization proceeding. In addition, author analyzes of the regulation of this institute (consensual financial restructuring) in Serbia and Croatia.