Restructuring law reinforces priority of restructuring over insolvency. It involves proceedings which are beneficial both for debtors and creditors. It contains solutions which are to help debtors avoid insolvency, increasing, at the same time, the influence of creditors on insolvency proceedings.
In case the court receives both restructuring and insolvency application, a judge analyses, first of all, whether restructuring process is possible for the enterprise. As a result, the entrepreneur has an opportunity to negotiate and make an agreement with their creditors, which protects his company from insolvency and, at the same time, determines the terms of his debt payment.