FIN MoJ requested comments on the legislative amendments proposed by the working group to promote the use of debt conversion in business restructuring.
Follows FIN MoJ Nov. 2023 announced company restructuring law, see #193075.
Proposals
Improves the restructuring opportunities of companies in financial difficulties and promote competitiveness of Finnish companies issuing bonds on international market.
Amend Business restructuring act to allow future restructuring programs to grant creditors the right to subscribe for shares in debtor company against receivables.
For the debtor company's shareholders, this means the restructuring program would replace company law decision-making concerning the share issue directed to creditors.
Effectiveness
Comments can be submitted on the working group's report until May 9, 2025.
