Business and Financial Phenomenon of Restructuring and Restructuring Measures

Regardless of the fact, whether the debtor is under insolvency proceeding or the proceeding of preventive restructuring, usually merely financial measures are not an adequate intervention regarding the company’s business operation in order to dismiss the grounds for insolvency. Consequently, the Slovenian Financial Operations, Insolvency Proceedings and Compulsory Dissolution Act (ZFPPIPP) itself includes other measures to dismiss the grounds for insolvency. The issue is introduced with a summary of some basic definitions of insolvency and restructuring as derived from the ZFPPIPP. A focus on a complete preparation of financial and business restructuring plan as defined by international practice and used when planning a turn in the companies’ businesses is given. The author emphasizes that the described measures are not only urgent only when the company is faced with the elements of insolvency, but should rather be executed by all those who face any financial difficulties.