Reorganization procedure
The Austrian reorganization process is a legally regulated, preventive measure for the sustainable restructuring of a company in order to avoid bankruptcy .
reorganization
Reorganization is generally used to describe changes in the company organization, especially the organizational structure . In business process reengineering , on the other hand, the focus is on redesigning the process organization . Since the organizational structure and process organization are closely linked, this distinction is not strictly possible.
Typical reasons for a reorganization are mergers, company acquisitions or restructuring.
Legal framework
With the Company Reorganization Act of 1997, the possibility was created in Austria of reorganizing companies even before material insolvency occurred (insolvency; over-indebtedness).
The procedure can be applied for by companies that are not yet insolvent. The reorganization is carried out according to business principles in order to improve the asset, financial and earnings position of a company that is endangered and thus enable the company to continue its sustainable future.
Due to its structural deficiencies, the procedure could not prevail in practice, so that the Corporate Reorganization Act remained "dead right".
Procedure
A company that would like to undergo a reorganization must submit an application for reorganization to the locally responsible regional court. This competent court must then initiate the proceedings. It also appoints an independent auditor, who can also be freely selected by the company on request. When the application and the examiner meet, a savings plan is drawn up, and all parties involved must take note of this.
In general, a period of two years is set for an expert opinion. This report can be refreshed after the time has elapsed. If the opinion is positive, the court must ensure that the proceedings are terminated.
This process begins and ends without public notice.