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Restructuring is a viable procedure for companies facing financial difficulties in the context of the COVID-19 pandemic to help them overcome the crisis. To date, several prominent Estonian companies have taken advantage of different options for restructuring. Last week, Tarmo Peterson, head of bankruptcy and insolvency at RASK, spoke at length on Äripäev Radio about the nature of restructuring and the opportunities it provides for businesses.

“Restructuring is an essential procedure in today’s economic situation. It is a method that enables entrepreneurs to save their business, to nurse it back to health,” says Tarmo in the introduction to the programme.

Unlike bankruptcy proceedings, restructuring allows the entrepreneur to retain control over their assets and the entire process, but the option should definitely be considered before insolvency occurs. In the case of permanent insolvency, restructuring no longer helps.

Currently, Tarmo is participating as an expert in compiling an analysis of the potential for making insolvency proceedings more efficient in Estonia. The analysis is related to a revision of the Reorganisation Act carried out by the Ministry of Justice and will serve as a basis for new amendments to the act.