Restructuring and insolvency—Finland—Q&A guide

The following Restructuring & Insolvency practice note provides comprehensive and up to date legal information covering:

  • Restructuring and insolvency—Finland—Q&A guide
  • 1. What main legislation is applicable to insolvencies and reorganisations?
  • 2. What entities are excluded from customary insolvency or reorganisation proceedings and what legislation applies to them? What assets are excluded or exempt from claims of creditors?
  • 3. What procedures are followed in the insolvency of a government-owned enterprise? What remedies do creditors of insolvent public enterprises have?
  • 4. Has your country enacted legislation to deal with the financial difficulties of institutions that are considered ‘too big to fail’?
  • 5. What courts are involved? What are the rights of appeal from court orders? Does an appellant have an automatic right of appeal or must it obtain permission? Is there a requirement to post security to proceed with an appeal?
  • 6. What are the requirements for a debtor commencing a voluntary liquidation case and what are the effects?
  • 7. What are the requirements for a debtor commencing a voluntary reorganisation and what are the effects?
  • 8. How are creditors classified for purposes of a reorganisation plan and how is the plan approved? Can a reorganisation plan release non-debtor parties from liability and, if so, in what circumstances?
  • 9. What are the requirements for creditors placing a debtor into involuntary liquidation and what are the effects? Once the proceeding is opened, are there material differences to proceedings opened voluntarily?
  • More...

Restructuring and insolvency—Finland—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to restructuring and insolvency in Finland published as part of the Lexology Getting the Deal Through series by Law Business Research (published: June 2021).

Authors: Waselius & Wist—Christoffer Waselius; Maria Lehtimäki

1. What main legislation is applicable to insolvencies and reorganisations?

The Bankruptcy Act governs bankruptcy proceedings, which are proceedings aimed at liquidating the assets of an insolvent company to satisfy its creditors and winding up the company.

The Company Administration Act governs company administration proceedings, which are proceedings aimed at rehabilitating a company that is insolvent but deemed ultimately viable through a restructuring of the debts and business operations of the company.

2. What entities are excluded from customary insolvency or reorganisation proceedings and what legislation applies to them? What assets are excluded or exempt from claims of creditors?

Specific regimes apply to the winding up and rehabilitation of regulated entities such as credit institutions, insurance companies and clearing houses. These regimes are based on EU directives, such as the Directive on the Reorganisation and Winding up of Credit Institutions. Investment undertakings are subject to the bankruptcy or company administration proceedings applicable to companies generally, but certain special provisions apply.

3. What procedures are followed in the insolvency of a government-owned enterprise? What remedies do creditors of insolvent public enterprises have?

The insolvency regimes applicable to a government-owned enterprise depend

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