What you need to know about rehabilitation procedure

What Measures May Be Included in the Rehabilitation Plan

The legislation provides for a wide range of measures aimed at improving the debtor’s financial condition. Depending on the financial situation of the enterprise, the rehabilitation plan may include:

• financial rehabilitation (sanation);
• debt restructuring;
• sale of assets through an electronic auction;
• financial leasing;
• assignment of claims;
• factoring and reverse factoring;
• partial debt forgiveness;
• write-off of fines and penalties;
• debt-to-equity conversion;
• conclusion of an amicable settlement agreement;
• other measures aimed at restoring solvency.

Who Manages the Debtor

After the rehabilitation plan is approved, the management of the debtor is carried out by the person determined by the meeting of creditors.

This may be:

• the debtor itself (in the case of an individual entrepreneur);
• the head or authorized body of a legal entity;
• a rehabilitation manager.

If management is transferred to a rehabilitation manager, the candidate is elected by the meeting of creditors from among persons authorized to perform the activities of an insolvency administrator.