Reconstruction
Hellström has successfully acted as reconstructors in several cases within different business areas.
A reconstruction typically means that debts to unsecured creditors are subject to composition. In most cases, debts are reduced by 50–75 %. The time needed for a reconstruction varies, but typically lasts between three to six months. After a successfully executed reconstruction, most companies can look towards a brighter future due to the reduced burden of debt.
After the devastating coronavirus outbreak that hit Sweden and the rest of the world in the winter of 2020, the number of reconstruction cases has increased substantially. Reconstruction has proven to be an effective way for many companies to cope with the consequences of the new financial situation created by the pandemic, as a reconstructed company typically sees its debt reduced substantially.
We believe that given the current financial environment, a successfully executed reconstruction is an effective way to free companies from the burden of debt and ultimately save them from bankruptcy.
We offer expert legal assistance with the following:
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Performance of thorough, financial due diligence.
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Negotiation of a potential composition with creditors and tax authorities.
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Execution of a legally binding composition, thereby reducing the company´s debts.
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Disposal of the company´s assets to obtain a more cost-efficient business structure.
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Procurement of new financing for the company, either by way of equity contributions or by way of new debt financing.
