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Tarmo Peterson writes on the role of companies in successful restructuring

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Tarmo Peterson writes on the role of companies in successful restructuring

In the September issue of the construction magazine EhitusEST, RASK attorney and head of insolvency Tarmo Peterson writes in detail why restructuring does not work in Estonia today and what could be done to break out of the current practice.

“Businesses are operating in uncertain economic conditions today. Compared to last year, every business now has an increased responsibility to critically assess its own financial situation and that of its partners,” Tarmo writes in the introduction to his article.

Temporary business difficulties are a normal part of economic activity, especially in times of crisis. It is important to be aware of the options that may be available to overcome insolvency. The reasons why restructuring does not work today are not so much to do with legislation as the behaviour of the debtor and the creditor during the process.