What Must Not Be Concealed in Restructuring?

Restructuring can offer a struggling entrepreneur a way to avoid insolvency. Protection from enforcement, the possibility of reducing liabilities and renegotiating key contracts may help a company survive its most difficult period.

That protection comes with strict information duties. A debtor seeking to emerge from a crisis should not treat those duties as a needless formality, the article says.

Concealing assets or documents, or submitting false information, can result in criminal liability for members of a company’s management board and entrepreneurs. Full transparency therefore forms the basis of a restructuring process that aims to rescue the business.