Public Financing of Restructuring

Abstract

The Restructuring Law of 15 May 2015 makes provision for enterprises who wish to seek restructuring in a crisis situation. Restructuring, understood as the totality of activities from the time that difficulties arise to the time that financial health is restored, can be carried out successfully when appropriate financial support is secured. An important problem in the context of insolvency law is what instruments are available and where to seek financial assistance. This article focuses on entities that can offer help to a business in crisis, presents the national aid program “New Opportunity Policy”, designed to provide businesses with support from public funds, and discusses public aid instruments (rescue aid, temporary support and restructuring aid). It needs to be kept in mind that the company’s financial situation will determine which public aid instruments can be chosen to provide funding. The paper also highlights signifi cant difficulties in obtaining private (internal, external) financing for restructuring. With the public support offered under Guidelines [EFTA Surveillance Authority Decision No. 321/14/COL of 10 September 2014], the state can support an enterprise that is insolvent or endangered with insolvency in a difficult financial situation.