Thursday, February 26, 2009

Swedish Law – Company Reorganisation - Company’s obligations

During the reorganisation the company has to provide the administrator with all financial information of significance in the reorganisation and shall comply with the administrator’s instructions regarding the way the company’s business shall be conducted.

The Company needs the consent of the administrator

  • to pay debts incurred prior to the reorganisation decision by the court,
  • to provide security for such debts,
  • to incur new obligations and
  • to transfer, pledge or grant any rights in property of material significance to the company’s business.

If the company fails to obtain the administrator’s consent this does not affect the validity of the company’s action.

It should be noted that the administrator may give his consent only where special cause exists.

2 comments:

Megan said...

I'm not sure this is the right place to post this....I came across your blog doing some internet research on Swedish bankruptcy laws...

My husband is a Swedish citizen who took out a loan to start a photography business (I think it is actually a personal loan though). He met me in the US and we have been married here for a year now, struggling to make payments on just the interest alone as finding work for him here has been difficult. He could not afford the union dues for having his business open in Sweden so we closed that earlier this year.

This weekend our apartment was broken into and $7,000 of camera equipment that he used the loan to purchase was stolen. We do not have renter's insurance. He owes over twice that amount still ($17,000) on the loan, and now has no way of making money without his camera. We are considering filing bankruptcy in Sweden for his debt, but we are not sure how that works now that he is a resident here (still a Swedish citizen and the loan is Swedish). My income is barely enough to pay rent and buy groceries.

So it goes.

I would be incredibly grateful for any advice. If we go through with this, I am assuming we will need a lawyer to assist?

Thanks.
Megan

SwedishLawyer said...

My answer is in a separate blog post here