How to overcome liquidation and bring a company back into business
This is a real example of a case of a company that filed for bankruptcy, reached an agreement with its creditors, but failed to comply with it, placing the company directly in liquidation. Faced with this situation, Kepler-Karst worked hard to achieve the best outcome for the company, which overcame liquidationand returned to business.
We are talking about a parent company of a designer furniture distributor in Spain and Latam, and Kepler-Karst worked on an innovative solution to avoid its extinction: the termination of the insolvency proceedings under Article 176.4 of the Spanish Insolvency Law.
What did we do?
-We reached agreements with creditors, mostly the main financial institutions in the country.
-A transaction was structured that included the purchase of a significant portion of the debt by an investor and its subsequent capitalization.
-We negotiated a partial waiving of claims with financial institucions.
-Certain assets were enhanced through a well-managed sale process and sold at market price.
The outcome: The company overcame liquidation and returned to business.
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