Читать книгу Bankrupt.Me-Not. Book of Problems - - Страница 5

PROBLEM 6

Given: businesses are always on the lookout for ways to survive beyond going bankrupt, often finding themselves on the brink, with all other options exhausted. Banks won’t refinance, interest is accruing on the cost of past borrowings, debts for materials exceed future earnings while wages and taxes have not been paid for months.

Question: why does the practical application of bankruptcy procedures for business turnaround in the 21^st century Russia remain at a most primal level? Why do companies avoid any procedures that can lead to a loss of assets and why do creditors try to seize those assets by hook or by crook in order to sell them for a song and get at least something back?

Solution: It is evident that the legislation and legal practices must be improved. Many entrepreneurs I know have had to prove to banks time and time again that a payment break or debt restructuring can rejuvenate their business or even make it more successful. This has been reaffirmed in practice – you must fight to the last ditch to prove that you can turn things around, go request payment holidays or refinancing, try to convince everyone that you can redress the situation, and never give up on your business if it is still alive, look for a way out. Do not initiate your bankruptcy, let the banks or tax authorities do it for you if they fail to be convinced. At least you can buy some time, which is so valuable in this fight. You will need it in the course of protecting your assets.

PROBLEM 7

Given: bank officials are indifferent and unwilling to even listen to reasonable proposals. Banks are never concessionary, so they must be the last point of contact.

Incidentally, banks are usually more alert than a soon-to-be bankrupt. Once they catch the wind of trouble in your financial affairs, they will act swiftly and professionally. They will have already got you to sign a personal surety and have made all attempts to put an obligation on each of the adult members of your family.

Nothing ever hurts an entrepreneur more than realizing that their business could cause their nearest and dearest to lose everything. Agents representing banks or other creditors often act ruthlessly, without compassion or intent to compromise.

Suddenly you realize that those with saccharine smiles who persuaded you to take out loans at extortionate interest rates of 15—25%, who invited you to free business breakfasts, discussion groups, and voluptuous parties with free buffets and champagne, where you were awarded prizes as the best business owner, have been, in fact, ‘fattening’ you until the time when your assets become more attractive to them than yourself.

Question: are you suddenly aware that this is the end? I’m sure you are. No one I know who has gone through or is going through bankruptcy could have imagined three years prior to bankruptcy that an apartment given as a birthday present to their darling daughter (if the deed of gift was executed less than 1,095 days ago) would be taken away, auctioned off, and sold.

Example one: my acquaintance once told me a story about a bank lawyer. She was certain she was entitled to slander the debtor in court and was being cynical to the point where she would not hesitate to triple the debt amount just to prove in court that the debtor was a swindler. That the debtor had been borrowing from the very same bank for more than 20 years without a single day of payment delay, largely paying back the loans taken out for business development at an interest rate of 15—25%, she would not even want to talk or hear about.

Example two: a bank has been lending money to an entrepreneur for many years, using the property built with the loans as collateral. When the crisis collapsed sales, the bank foreclosed on the entire property for a quarter of its value, refusing to revalue it and leaving the defaulter in debt to other creditors. This is how a successful property owner turned into an entrepreneur owing to everyone.

Solution: do not give up and study the intricacies of bankruptcy procedures most thoroughly. This fairly uncomplicated subject does not require a university degree, rather diligence and a competent hands-on lawyer are needed.