Abstract:

The insolvency of enterprises constitutes an inherent component of any market economy. You can respond to a business crisis in two ways, either by saving it i.e. restructuring or remodelling the company and limiting, at least temporary, creditor rights, while preserving the jobs and assets of the restructured entrepreneur or by liquidating it i.e. by realization of the estate and thus liquidation of the economic entity with a partial satisfaction of creditors and simultaneous return of tangible assets to trading. Thus, both liquidation and reorganization are possible in most countries.

The problem of the accuracy of choice between the liquidation of an enterprise and its restructuring is one of the main topics of interest for practitioners and theorists dealing with the bankruptcy of enterprises.