Who can request a reconstruction?
Any company can request a reconstruction. The request must come from the company's board.
A creditor can also request a reconstruction in the company if the debt is not paid as it falls due.
Conditions for reconstruction
To request reconstruction negotiations, the company must have, or in the foreseeable future will have, serious financial problems.
The company must have completely up-to-date accounts, and all tax and duty returns must be submitted.
What must a reconstruction request contain?
When a company requests a reconstruction, the district court must have an overview of:
- the company's financial problems, and whether the company can pay the debt as it falls due
- how the company plans to carry out the reconstruction
- how the company will settle the debt, and what contact the company has had with creditors about this
- how the company's operations can be financed during the reconstruction, with budgets showing the costs of the reconstruction
- the company's assets and debts, what securities have been provided for the debts, and the time when the debts were incurred and the securities provided
- registration and documentation of accounting information
When a creditor requests a reconstruction, the district court must have an overview of:
- the background for why the creditor is requesting a reconstruction
- the claims the creditor believes they have against the debtor
- why the creditor believes the debtor cannot pay the debt as it falls due
- how the creditor plans to carry out the reconstruction
- how the debtor can cover the debt
- how the company's operations can be financed during the reconstruction, including the costs of the reconstruction
Which district court handles the reconstruction request?
The main business address of the company determines which district court handles your request. Submit or send the request with an original signature to the district court, or send it with a digital signature via email.
Do you have to pay to request a reconstruction?
It is expensive to carry out reconstruction negotiations. The district court will usually require an advance payment of at least NOK 300,000. This amount serves as security for the costs of the reconstruction committee's work, which is an ongoing operating cost during the reconstruction. The costs of the reconstruction can be significantly higher depending on the scope of the case.
How does the district court handle the request?
The district court must handle reconstruction requests quickly. If the request comes from the company itself, the case will usually be processed within three days. When a creditor requests a reconstruction, we process it within two weeks.
If the district court opens reconstruction negotiations, we appoint a lawyer as the reconstructor. The lawyer and a creditor committee assist the debtor during the negotiations.
A reconstruction negotiation should usually last no longer than six months.
Different solution models
If reconstruction negotiations are opened, the arrangement the parties come to can be:
- payment deferral
- debt reduction
- conversion of debt to equity
- sale of all or parts of the business
- a combination of these
Outcome of the negotiations
The outcome of reconstruction negotiations can be:
- voluntary reconstruction – must be accepted by all creditors covered by the proposal
- reconstruction by compulsory composition – must be supported by creditors holding at least 50% of the total claim
- reconstruction by compulsory composition – must be approved by the district court
- no solution – the negotiations are concluded with a return if the debtor is solvent, or by opening bankruptcy