The Advisory Committee on Bankruptcies has approved a recommendation for accelerated reorganisation proceedings. The recommendation provides a model in which a reorganisation programme is confirmed as quickly as possible for a company that has financial difficulties but is otherwise viable. The recommendation can be found on the website of the Office of the Bankruptcy Ombudsman.
The accelerated reorganisation proceedings model combines voluntary and statutory corporate reorganisation measures. The objective of the model is that the reorganisation programme is prepared under the supervision of a person jointly approved by the major creditors and the debtor company as far as possible before the submission of the reorganisation application to the court. The intention is to minimise the duration of the court proceedings in the reorganisation matter. This reduces the damage caused by corporate reorganisation to the debtor's image and operations. It also improves the creditors' ability to influence the terms of the reorganisation programme.