Our dispute resolution lawyers defended the interests of the client, a company undergoing restructuring, in the restructuring case. The court of the first instance found that after the initiation of the restructuring case the company had failed to pay a part of the current taxes, and therefore decided not to approve the restructuring plan, as well as to terminate the restructuring proceedings.
Assisted by our lawyers, the company appealed this ruling to the Court of Appeal, explaining that part of the current taxes had not been paid due to the crisis caused by the COVID-19 pandemic and providing evidence that an agreement on the remaining payments had been reached with the tax authorities. The Court of Appeal reversed the appealed ruling and remanded the issue to the court of the first instance to be reheard. The court of the first instance re-examined the issue and decided to approve the company’s restructuring plan.
This victory is crucial for the client, a viable company facing financial difficulties, for which the continuation of the restructuring process and the implementation of the restructuring plan are necessary to continue business operations and overcome financial difficulties.