Insolvency & Restructuring: Solutions for Companies in Financial Distress

BMC’s insolvency practice advises companies, self-employed individuals, and investors in financial distress, restructuring, and insolvency proceedings. Our goal is always the same: intervene when real options still exist, preserve the business, and limit personal liability.

Pre-insolvency restructuring

When insolvency is still imminent, the TRLC provides instruments to avoid formal proceedings:

• Pre-insolvency proceedings: Court notification to activate the judicial shield against individual enforcement actions during the negotiation period.
• Debt restructuring: Class-by-class creditor negotiation with haircut, standstill, and operational restructuring, with judicial homologation binding on dissenters.
• Judicial restructuring plan: Homologation application before the Mercantile Court for plans requiring binding effect on dissenting creditors.
• Restructuring plan (Insolvency Law): Insolvency restructuring instruments for SMEs with significant liabilities and complex financial exposure.

Corporate insolvency and special procedures

• Insolvency advisory: Full management of SME insolvency — from viability assessment to the composition proposal, collective redundancy, and classification stage.
• SME micro-enterprise process: Digital simplified route for small companies: no insolvency administrator, agile processing, reduced cost.
• Express insolvency: For companies with no assets sufficient to cover administration costs: immediate dissolution with simultaneous opening and closure.
• Insolvency qualification: Defence at the classification stage to limit or avoid personal liability for directors and senior officers.
• Insolvency agreement: Drafting and negotiation of the composition proposal with the creditor mass — the alternative to liquidation within the proceedings.
• Insolvency rescission: Challenge of transactions prejudicial to the insolvency estate carried out in the suspect period before filing.

Second chance and public debt

• Second chance law: Advisory for self-employed individuals and private persons on debt discharge, including public debt within the TRLC limits expanded by the Supreme Court in 2026.
• Public debt negotiation: Instalment arrangements with tax authority and social security, inside and outside insolvency proceedings.

Debt recovery and dissolution

• Debt recovery: Pre-litigation demand, payment order proceedings (Arts. 812–818 LEC), enforcement, and asset seizure for corporate creditors.
• Company dissolution: Full processing of voluntary dissolution with tax, registry, and notarial coordination.