What is company reorganisation?
Company reorganisation may be an option if your company is having financial problems and you believe that it has the potential to become profitable again.
While your company is undergoing reorganisation, creditors cannot demand payment for debts that belong to the period before the decision on reorganisation. However, your company must pay all costs incurred during the reorganisation. If the company has employees who have not been paid, they can receive compensation through the wage guarantee.
Who can apply for company reorganisation?
It is most common for you, as a representative, to apply for company reorganisation. It may also be one of those who wants to get paid, your creditors, who applies for a reorganisation of the company you represent. The application is filed with the District Court. When the District Court decides on the reorganisation, it also appoints an administrator.
You can find more information about what happens in case of reorganisation on the Swedish Courts website.
Detta händer vid företagsrekonstruktion (in Swedish)
The administrator's task
The task of the administrator is to direct the company reorganisation. This means that the administrator examines whether the company can get out of its financial problems and, if so, in what way. The work is done together with management. The administrator shall also assist management in drawing up a reorganisation plan. The plan describes how the company will overcome its financial difficulties and continue to operate. The plan may also include a debt settlement.
The company's debts
The reorganisation plan for your company may include a debt settlement between the company and the creditors. It used to be called composition. This means that those who want to be paid receive compensation for part of their demand (claim). It also means that creditors must waive some of their claims against your company to give it a chance to continue operating.
Wage guarantee
If the company's employees have not been paid, they can receive wage guarantee when the company undergoes reorganisation. The administrator investigates and decides on wage guarantee.
The administrator's fee and expenses
Your company pays the costs of the administrator's work on the company reorganisation. If you consider the fee to be too high, you can request that the District Court decide on the fee. The creditors and we as a supervisory authority may also request that the District Court decide on the fee. The District Court assesses whether the fee is reasonable and decides what fee the administrator should be paid.
Our supervision of administrators
We supervise the administrators. This means, among other things, that the District Court asks us for our opinion before appointing an administrator. The purpose is to ensure that the person appointed as administrator is fit to handle the assignment in the reorganisation in question.
We can request that the District Court replace an administrator if they do not perform their duties. We may also request that the District Court review and decide on the administrator's fee when the reorganisation is to be concluded.
We also supervise wage guarantees in reorganisations.