BANKRUPTCY & RESTRUCTURING

One of the main characteristics of bankruptcy proceedings in Bosnia and Herzegovina is that they are never initiated as a manner of protection of company from its creditors, but only once the company is in severe distress. This leaves very little room for restructuring. Typically, debtors do not comply with their obligation to initiate bankruptcy proceedings; whereas, if the creditors do so they are obliged by the court to advance the costs of the procedure. In such situations, bankruptcy is initiated only by those creditors who have significant claims. In these circumstances, we are able to support you in a realistic analysis of the possibilities for collection of your receivables, either before or in the course of the bankruptcy procedure, as well as provide advice on how to protect you from those who will try to prevent collection. There are rare positive examples when restructuring prevented bankruptcy and enabled further successful operations. One of those is the case of Agrokor d.d. where we provided legal advice and successfully achieved restructuring of all subsidiaries in Bosnia and Herzegovina.