CRITICAL ANALYSIS OF SPECIFIC METHODS TO PROTECT COMPANY ASSETS IN INSOLVENCY PROCEEDINGS

Abstract

This article aims to identify and describe some of the advantages that a debtor would have during insolvency proceedings. Thus we argue that firms in default entered in insolvency can enjoy certain facilities which may finally transform in a successful plan of reorganization. The three heritage protection mechanisms considered are: (i) suspension of all judicial and extrajudicial actions in order to establish a claim against the debtor or its assets, (ii) prohibit vital service providers (electricity, gas, water, telephone etc.) the suspension of services to captive consumer debtor, (iii) immediately cease any enhancement calculation of amounts due.

Keywords

• Insolvency
• Reorganization
• Insolvency proceedings