|Opis:||Financial crisis is becoming rather serious problem many economic operators are being confronted with nowadays. Companies should always be prapared for dealing with financial problems, able to recognize the signs of a crisis in advance and respond to them successfully in order to avoid serious financial problems. There are different reasons that cause a financial crisis - they can occur in an environment itself, in a company or among companies. As there are different reasons leading to a crisis, there are also different ways of solving them.
When a company gets into a crisis and becomes insolvent and its capital inadequate, it has to choose one of the two main insolvency procedures - either compulsory settlement or bankruptcy. Bankruptcy is the worst form of repayment, resulting in value destruction for capital shareholders, workers, creditors, business partners, consumers and the country. Compulsory settlement provides the most favourable conditions for debtors as well as for creditors, provided that the company fulfils certain requirements.
In May 2013, the Parliament passed new Insolvency Bill, introducing the Institution of Simplified Compulsory Settlement that has not been known in our legal system before. The introduction of the Institution of Simplified Compulsory Settlement should encourage micro and small enterprises as well as sole traders to choose the procedure of compulsory settlement more often as they have in the past. Conditions for those subjects enable them cheaper, faster and more frequent financial restructuring plan.
In this masters’ degree we wanted to show on an actual case of company X why insolvency occurs, present the details of the procedure, introduce complex financial restructuring plan preparation and emphasise the importance of creating a professional and detailed plan that is going to be acceptable for both, the debtor and creditors.
Furthermore, we wanted to present the best solution for the company to the management of company X. Examination of debtor’s situation has showed the best solution would be simplified compulsory settlement.
On the basis of the results of this masters’ degree we can confirm that the simplified compulsory settlement is the best solution for company X, with its effects being very positive and multi-layered. Bankruptcy would lead to the termination or death of the company. Provided that there is a possibility of restructuring business, it is better for a debtor to decide for compulsory settlement, keep the company running and avoid other potential problems. This is also an advantage for the creditors, whose debts are more likely to be settled than they would be in a bankruptcy process and they are in this way able to stay in contact with their buyers.|