Insolvency and Restructuring

Our use of the term “restructuring” relates to the turnaround or reorganisation of business enterprises.

Restructuring involves salvaging a company that is experiencing serious financial problems. The objective is to change or turn-around all or parts of the company’s operations to enable the company to continue to operate within an acceptable financial framework. A successful restructuring process will provide solutions that are to the benefit of all involved parties. The owners, local community, employees, suppliers and customers will all be better off if there is a successful restructuring rather than a bankruptcy.

A company requires time in which to adequately turn around its fortunes. It is therefore a major advantage for the company to have prepared a realistic plan for restructuring operations together with its advisors before the crisis has become a reality. As a general rule, it is also decisive that the advisor who manages this process from the outside has experience within the specialist field and enjoys a high degree of trust among the creditors.

A new Act relating to restructuring entered into force in Norway in May 2020. The Act has given us a “toolbox” which makes it possible to salvage companies from bankruptcy to a much greater extent than previously. It is now possible to achieve bankruptcy protection under a restructuring process, whereby the process is subject to judicial review and control.

A company can also conduct voluntary debt settlement proceedings with its creditors that do not involve the courts. This requires acceptance from the most important creditors. This process is less formal and less costly, and can therefore be an appropriate alternative to restructuring.

The restructuring of a company requires a number of legal measures, for example, choice of company structure, negotiations for and structuring of capital contributions (equity, debt capital (loan) or hybrid capital (for example, subordinate loan), downsizing, renegotiation of contracts, agreements with creditors etc.

Ryger’s lawyers have extensive experience and expertise within all areas of law that are relevant to restructuring. We work in teams to ensure that good solutions are achieved. We work together with auditors and financial advisors with specific experience in the field.

During the past few years, our lawyers have successfully managed non-judicial restructuring processes.

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