A composition may be either voluntary or take the form of a compulsory composition ordered by the bankruptcy court. A voluntary composition is an agreement between the company and its creditors under which the creditors fully or partially remit debt or grant an extension of the time for repaying the debt. A compulsory composition is a type of 'debt restructuring' for self-employed persons and businesses which is obtained by commencement of reconstruction proceedings through the bankruptcy court.
We assist throughout the process from the initial review of the financial standing of the company to the negotiations with creditors and the final agreement on a subsequent composition. Furthermore, we advise on any tax implications of voluntary composition arrangements.
Following a specific assessment, we advise both initially on the possibilities for a reconstruction and subsequently in connection with the filing of a petition for reconstruction as well as performing the duties of administrator during the reconstruction.