Restructuring and rehabilitation: legal support for business

Financial difficulties are not a verdict for business. If timely measures are taken, it is possible to preserve the company, its assets, reputation, and even reach a new level. PRAGNUM Law Firm specializes in supporting debt restructuring, debtor rehabilitation, negotiations with creditors, and crisis resolution. We work in the interests of both debtors and creditors, ensuring legal balance and stability in the most complex financial and legal cases.

What are debt restructuring and rehabilitation?

Restructuring.

This is a set of legal and financial measures aimed at changing the terms of debt obligations:

• extension of payment terms,
• reduction of debt amount,
• restructuring of interest,
• revision of repayment schedules.

This is not “debt cancellation,” but a chance for an agreed-upon resolution between creditors and debtor without litigation.

Rehabilitation.

This is the financial recovery of a debtor's business, a procedure aimed at restoring the company’s solvency. 

Rehabilitation may be:

• pre-trial — initiated by agreement of the parties, without involving the court;
• judicial — within bankruptcy proceedings, under the control of the commercial court.

Rehabilitation enables a business to remain “afloat” and avoid liquidation through bankruptcy.

When should restructuring or rehabilitation be considered?

• The company has stable assets but is unable to service its debts.
• There is a temporary loss of solvency.
• There is a need for protection from enforcement proceedings or seizures.
• The business owner seeks to preserve reputation and continue operations.

Experienced Debt Restructuring Attorney in Kyiv

Legal support for restructuring.

PRAGNUM attorneys provide a full cycle of legal support for restructuring processes, focusing on the client’s strategic interests:

Financial situation analysis.

We thoroughly assess the status of assets and liabilities, the volume of obligations, and identify real risks and opportunities.

Restructuring strategy development.

Depending on the circumstances, we select the most optimal legal tools:

• conclusion of a settlement agreement,
• payment deferral,
• debt substitution,
• voluntary rehabilitation with investor support.

Negotiations with creditors.

Our team manages communications with all parties — from banks to private investors. We robustly defend the client's interests and conduct negotiations for mutually beneficial conditions.

Judicial representation.

In cases of disputes or creditor refusal — we initiate restructuring procedures through court, prepare all necessary documents, and represent the client at all levels.

Protection against claims.

If your company is already facing lawsuits or enforcement proceedings, we provide legal defence, including the imposition of a moratorium or asset protection measures.

Pre-Trial Rehabilitation in Kyiv — Order Attorney Services Online 

• Debtor rehabilitation.

The rehabilitation procedure allows companies to restore solvency without liquidation. The PRAGNUM legal team supports both pre-trial and court-supervised rehabilitation.

• Assessment of rehabilitation feasibility.

We help determine whether rehabilitation is realistic or whether it is more appropriate to pursue restructuring or a settlement agreement.

• Development of a rehabilitation plan.

We prepare a clear, economically justified plan, defining phases, timelines, sources of financing, and expected outcomes.

• Plan coordination with creditors.

We conduct dialogue with key creditors and assist in approving the rehabilitation plan either in court or out of court.

• Implementation support.

We legally support all stages of the plan’s execution — monitor compliance with the schedule, amend agreements, and coordinate restructuring with public authorities and investors.

Comprehensive Legal Support for Rehabilitation in Kyiv

Settlement agreement as a debt resolution tool.

Such an agreement is an effective and lawful way to resolve debt obligations without a full court process or bankruptcy. It is one of the most important tools allowing businesses to preserve assets, reputation, and restore solvency under mutually beneficial terms.

How to conclude a settlement agreement with creditors?

Entering into a settlement agreement requires thorough preparation and professional legal support. The procedure includes several key steps:

1. Analysis of debt load and creditor terms — we examine all of the client’s financial obligations in detail.
2. Preparation of proposals for debt repayment terms — based on business capabilities, we formulate realistic repayment or deferral terms.
3. Negotiations with all parties — achieving a compromise between debtor and creditors is key to a successful agreement.
4. Legal formalization and court approval (if needed) — to ensure legal force and protection of the agreement.

Legal advantages of a settlement agreement.

• Bankruptcy prevention — the agreement allows the company to avoid court bankruptcy procedures, which often lead to asset loss.
• Reputation and business preservation — the possibility to continue business operations without loss of partner trust.
• Flexibility of terms — the parties independently define deadlines, amounts, and other details of debt repayment.
• Protection from enforcement actions — after approval, other enforcement actions are suspended.

Attorney support at all stages of negotiations.

PRAGNUM attorneys provide full legal support in concluding a settlement agreement:

• drafting documents and agreements;
• representing the client in negotiations;
• monitoring compliance with agreements;
• supporting court approval (if necessary).

Our approach guarantees legality, effectiveness, and maximum protection of the client’s interests.

Judicial Rehabilitation in Kyiv — Order Legal Support

Frequently Asked Questions (FAQ)

1. In what cases is restructuring preferable to bankruptcy?

Restructuring is an effective solution when the business has the potential to regain solvency but temporarily cannot meet its obligations. It enables asset preservation, continued company management, and debt settlement through an agreed plan with creditors. If the company has entirely lost viability, bankruptcy becomes more appropriate.

2. How does the rehabilitation procedure work?

Rehabilitation can be pre-trial or judicial. The former is a voluntary resolution of problems between debtor and creditors through an agreed plan. In court, the process involves filing a petition with the commercial court, appointing a rehabilitation manager, and implementing the approved plan under court and creditor oversight.

3. What rights do the debtor and creditor have in the restructuring process?

The debtor has the right to:

• initiate restructuring,
• propose repayment terms,
• participate in negotiations,
• petition the court for plan approval.

The creditor, in turn, has the right to:

• vote on the debtor’s proposals;
• receive accurate information about the debtor’s financial status;
• contest unfair or invalid agreements;
• initiate bankruptcy in case of restructuring default.

Negotiations with Creditors with Legal Support from an Experienced Attorney 

Why choose PRAGNUM?

• Deep expertise in restructuring and rehabilitation cases;
• Comprehensive approach: from risk analysis to full legal support;
• Protection of debtor and creditor interests;
• Experienced team of attorneys and financial advisors;
• Real results: preserved businesses, multimillion debts resolved;
• Individual approach: no template solutions;
• Complete confidentiality and protection of the client’s business reputation.

Need a legal solution to save your business?

The PRAGNUM legal team has years of experience handling complex financial matters, including debt restructuring, enterprise rehabilitation, and creditor representation. We provide a comprehensive approach, strategic vision, and impeccable legal quality.

Request a consultation — our attorneys will contact you, analyse your situation, and propose an effective strategy.

Get professional legal advice to ensure high-quality legal support for your business!

Experts in this industry

Founder and Managing Partner, Attorney Vitaly Bobrynev

Counselor, Attorney Oleksandr Mostovyi