The declaration of bankruptcy is not considered an attractive choice for dealing with a company in financial distress. Neither by the debtor (to resolve her/his financial problems), nor by the creditor (to recover her/his debt).
Therefore, most businessmen prefer to declare the debtor bankrupt only as a final remedy, and they try to find other ways away from judicial solutions to solve the problems of the unpaid debts instead of declaring bankruptcy. One of the most common alternative solutions to bankruptcy is an "Out of Court Workout". What does this approach entail?
Out of Court Workout. Definition.
The term "workout" is an attempt by the debtor to solve a financial problem through a consensual agreement with creditors outside of the court procedures. This alternative solution is based on two foundations: the company's creativity work on one hand, and the extent of creditors' willingness to cooperate with it to overcome its crisis on the other hand. The approval of all creditor
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