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RASK's partner Tarmo Peterson appointed as the restructuring advisor of Planet42 Estonian association
RASK's partner Tarmo Peterson appointed as the restructuring advisor of Planet42 Estonian association
Harju County Court appointed Tarmo Peterson, a partner of RASK, as a restructing advisor in the reorganization proceedings of Inclusion OÜ (Planet 42).
According to Peterson, the purpose of initiating the restructuring procedure is to give the entrepreneur the opportunity to overcome the payment difficulties that have arisen without going bankrupt. "When initiating the restructuring procedure, the court made an initial assessment that restructuring might be possible. This assessment is based on the data provided by the company. Whether this is actually the case will be revealed during the reorganization procedure," commented Peterson.
In the course of the further procedure, the demands of the creditors are clarified, a restructuring plan is prepared, i.e. the company's proposal to the creditors, and the restructuring plan is voted on by the creditors. If the proposed plan achieves sufficient creditor support, the court approves the plan adopted by the creditors, checking, among other things, whether the rights of the creditors who voted against are sufficiently protected. The job of the restructuring consultant is to assess whether the restructuring in the proposed form can be successful.
"The entrepreneur's role is to make reasoned proposals regarding restructuring measures. The job of the restructuring consultant is to assess whether the restructuring in the proposed form can be successful. The role of the creditors is to vote whether the plan proposed by the company is suitable for them," added the advisor.
Although the main purpose of reorganization is to give the entrepreneur a second chance, according to Peterson, it is premised on the fact that reorganization would be more beneficial to the creditor than bankruptcy. In other words, the creditors cannot get less in the restructuring procedure."The reorganization adviser appointed by the court advises the entrepreneur and evaluates the perspective of the reorganization, and at the same time stands for the protection of creditors' interests in the proceedings," he explained. If the company being restructured is permanently insolvent, the restructuring advisor submits a request to the court to end the restructuring process.
"The key word of the whole process is transparency. It is important for the entrepreneur to restore the trust of creditors in order to receive sufficient support for the restructuring plan. The reorganization advisor appointed by the court has an important role here as a neutral party," confirmed Peterson.
Looking at the upcoming process, Peterson, who has been appointed as a reorganization advisor, admits that the reorganization procedure of Inclusion OÜ (Planet 42) is still in the initial stage, the possibilities of reorganization are being analyzed, and a lot depends on the negotiations with creditors in the future. "It is still too early to say how much exactly the restructuring will bring back to the creditors. Based on the information available today, there is no reason to believe that the creditors' claims would be satisfied to a greater extent in the bankruptcy proceedings," he said.
The deadline for accepting the Planet 42 reorganization plan and submitting it to the court for approval was set for October 18. At least two weeks in advance, the restructuring advisor must publish the restructuring plan in the Ametlikud Teadaanded project publication and forward it to the creditors for perusal.
According to Peterson, the purpose of initiating the restructuring procedure is to give the entrepreneur the opportunity to overcome the payment difficulties that have arisen without going bankrupt. "When initiating the restructuring procedure, the court made an initial assessment that restructuring might be possible. This assessment is based on the data provided by the company. Whether this is actually the case will be revealed during the reorganization procedure," commented Peterson.
In the course of the further procedure, the demands of the creditors are clarified, a restructuring plan is prepared, i.e. the company's proposal to the creditors, and the restructuring plan is voted on by the creditors. If the proposed plan achieves sufficient creditor support, the court approves the plan adopted by the creditors, checking, among other things, whether the rights of the creditors who voted against are sufficiently protected. The job of the restructuring consultant is to assess whether the restructuring in the proposed form can be successful.
"The entrepreneur's role is to make reasoned proposals regarding restructuring measures. The job of the restructuring consultant is to assess whether the restructuring in the proposed form can be successful. The role of the creditors is to vote whether the plan proposed by the company is suitable for them," added the advisor.
Although the main purpose of reorganization is to give the entrepreneur a second chance, according to Peterson, it is premised on the fact that reorganization would be more beneficial to the creditor than bankruptcy. In other words, the creditors cannot get less in the restructuring procedure."The reorganization adviser appointed by the court advises the entrepreneur and evaluates the perspective of the reorganization, and at the same time stands for the protection of creditors' interests in the proceedings," he explained. If the company being restructured is permanently insolvent, the restructuring advisor submits a request to the court to end the restructuring process.
"The key word of the whole process is transparency. It is important for the entrepreneur to restore the trust of creditors in order to receive sufficient support for the restructuring plan. The reorganization advisor appointed by the court has an important role here as a neutral party," confirmed Peterson.
Looking at the upcoming process, Peterson, who has been appointed as a reorganization advisor, admits that the reorganization procedure of Inclusion OÜ (Planet 42) is still in the initial stage, the possibilities of reorganization are being analyzed, and a lot depends on the negotiations with creditors in the future. "It is still too early to say how much exactly the restructuring will bring back to the creditors. Based on the information available today, there is no reason to believe that the creditors' claims would be satisfied to a greater extent in the bankruptcy proceedings," he said.
The deadline for accepting the Planet 42 reorganization plan and submitting it to the court for approval was set for October 18. At least two weeks in advance, the restructuring advisor must publish the restructuring plan in the Ametlikud Teadaanded project publication and forward it to the creditors for perusal.