Preventive concordat procedure is the judicial procedure for preventing insolvency, the opening of which suspends the enforcement of the law, and the debtor recovers his activity and pays all or part of the affected claims, on the basis of a restructuring plan voted by creditors whose claims are affected and approved by the court (the syndic judge).
The main duties of the concordat administrator – insolvency practitioner, are as follows:
a) draw up the report on the debtor’s state of difficulty, the list of claims and the list of claims at issue;
b) draw up or, where appropriate, assist the debtor in preparing the restructuring plan;
c) assist the debtor or, at his request, negotiate the restructuring plan and take steps to settle amicably any dispute between the debtor and creditors or between creditors;
d) may require the syndic judge to verify the legality of the constitution of categories and subcategories of claims;
e) convene, where appropriate, collective meetings of creditors holding affected claims and draw up their minutes;
f) supervise the fulfilment of the obligations assumed by the debtor through the restructuring plan;
g) draws up, submits to the case file and sends to the affected creditors quarterly reports on its activity and on the debtor;
h) monitor and, where appropriate, assist the debtor in the implementation of the restructuring plan by any actions foreseen therein or that are necessary for the implementation of the plan, such as: operational measures, capitalization of assets, capitalization of the company or part of it as an independent ensemble;
i) request the court to close the proceedings of the preventive concordat;
j) perform any other duties stipulated by law, established by the restructuring plan or established by the syndic judge.