Tuesday, March 03, 2009

Swedish Law – Company Reorganisation - Enforcement Measures during Reorganisation

During the reorganisation period no levy of execution or other enforcement measures may take place against the company with the exception of claims where the creditor has a possessory pledge right or a right of retention.

No decisions regarding provisional attachment (arrest) or payment security may be passed during the reorganisation period.

If there is a special cause to believe that the company is acting in a way that may jeopardise a creditor’s rights, the creditor may apply for and the court may pass such decisions as it deems fit to secure such rights.

Should a creditor apply for bankruptcy during the reorganisation period, the court should stay the bankruptcy proceedings if so requested by the company.

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