PKPU or direct talks: choosing a path when bank debt bites
Debt restructuring does not always need a court. Here is how to weigh negotiation, mediation and PKPU.
Pillar IV
Debt Restructuring & Asset Recovery
When interest keeps accruing and collateral is at risk of enforcement, timing matters. We help build a negotiating position backed by real cash-flow data and a thorough review of the assets.
Who we act for
Corporate debtors, property owners and shareholders facing non-performing loans or the threat of bankruptcy.
Services in this pillar
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Bank negotiation and mediation
Supporting loan restructuring talks: lower interest, principal haircuts, longer tenors or debt conversion.
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Due diligence on distressed assets
A combined review of the building’s physical state, zoning compliance, the validity of titles and mortgages, and the financial viability of the collateral.
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Bankruptcy and PKPU mitigation
Preparing a composition plan (homologation) based on real cash-flow projections to keep the business going.
Issues we often handle
- Property collateral is at risk of enforcement by the bank
- Loans are non-performing and interest keeps growing
- A creditor has filed for PKPU or bankruptcy
- Asset values and legal status need re-assessing
How we approach it
- 01 Verify the debt position, collateral and cash flow
- 02 Examine the assets’ physical state, legal status and value
- 03 Prepare a realistic restructuring proposal
- 04 Negotiate with creditors, or take the PKPU route if needed
Frequently asked questions
What is the difference between PKPU and bankruptcy?
PKPU (suspension of debt payment obligations) gives a debtor up to 270 days, including extensions, to offer creditors a composition plan. Bankruptcy is a general attachment of the debtor’s assets, which a receiver then liquidates. Both are governed by Law No. 37 of 2004.
Can restructuring happen without going to court?
Yes. Many restructurings are settled through direct negotiation or mediation with the bank. PKPU is considered when talks fail or there are many creditors.
Related insights
We are here to help
Tell us briefly about the business or legal issue. The 60-minute preliminary meeting is free of charge with written limits, and we reply within one working day.