When a company faces falling revenue, a blocked account or an inability to regularly meet obligations to banks and suppliers, a fast and expert response is critical. Ignoring the problem most often leads to account blockade and, ultimately, bankruptcy. But bankruptcy is not the only outcome - the solution for exiting a financial crisis is corporate financial restructuring.
At Maneo, with more than 15 years of experience in crisis management and financial stabilisation, we help entrepreneurs overcome financial challenges every day. To date, we have successfully managed more than 1,000 pre-bankruptcy proceedings, with 94% of settlements concluded. Our goal is not just temporary "firefighting", but a deep reorganisation of operations that will secure long-term stability and profitability for your company.
Is your company in crisis or on the edge of account blockade? Request a confidential consultation →
What Is Corporate Financial Restructuring?
Financial restructuring is the process of significant changes to a company's financial structure, obligations and assets, with the primary objective of avoiding bankruptcy and returning the company to profitability. Unlike regular business advisory, which focuses on growth, restructuring is applied when the survival of the company is threatened.
In practice, restructuring most often includes:
- Loan rescheduling - negotiations with banks on extending repayment terms, reducing interest rates and deferring payments (grace period)
- Partial debt write-off - agreement with creditors on partial write-off of obligations, which is more favourable to them than bankruptcy settlement
- Sale of non-operating assets - monetising real estate, equipment or business shares that are not necessary for core operations
- Operational cost reduction - closing unprofitable business units, optimising the number of employees and rationalising processes
- Pre-bankruptcy proceedings - which in practice can encompass all of the above
The goal is to align due financial obligations with the realistic cash flows the company can generate and secure long-term solvency and liquidity.
According to the Guidelines for Entrepreneur Debt Restructuring adopted by the Government of the Republic of Croatia, the priority task of every entrepreneur is to acknowledge in time that the business is in financial difficulty and to take measures to resolve it without delay.
Early Signs That Your Company Needs Restructuring
Many entrepreneurs seek help only after an account blockade occurs, but by then the options are significantly narrowed. Financial restructuring is most successful when initiated at the first signs of crisis. Pay attention to the following indicators:
Chronic shortage of working capital. Constant "juggling" of payments, late settlement of obligations to suppliers and inability to maintain a normal operating cycle.
Difficulty repaying loans. Revenue from regular operations is no longer sufficient to cover monthly bank instalments, and the company begins using revolving loans or borrowings to cover payments.
Growing inventory and declining collection of receivables. A warehouse full of goods that are not selling, while at the same time you cannot collect receivables from customers. This is a classic signal of impaired liquidity.
Loss of key clients or market share. Sudden market changes, loss of major orders or the emergence of stronger competitors have sharply reduced your revenue.
Increasing tax debt. Delays in paying VAT, pension and health insurance contributions and profit tax - this quickly becomes a problem because the Tax Administration can initiate enforcement.
Account blockade shorter than 60 days. Under the Bankruptcy Act, an account blockade shorter than 60 days is one of the grounds for initiating pre-bankruptcy proceedings. If you are blocked, every day matters.
If you recognise one or more of these signs, it is time for an urgent business analysis. Contact us for a free assessment →
Financial Restructuring vs. Pre-Bankruptcy Proceedings - What Is the Difference?
Entrepreneurs often do not distinguish out-of-court financial restructuring from pre-bankruptcy proceedings, and that difference can be decisive when choosing the right strategy.
Out-of-court (voluntary) restructuring is conducted without court involvement, through direct negotiations with creditors. Its advantages are speed, flexibility and discretion - no one except you and your creditors needs to know that the company is in difficulty. This is the ideal approach when the company is not yet blocked, but sees problems accumulating and does not want to enter pre-bankruptcy proceedings.
Pre-bankruptcy proceedings are formal court proceedings regulated by the Bankruptcy Act. They are initiated when an out-of-court agreement is not possible or when forced account unblocking is required. The advantages are account unblocking in only a few days, the possibility of writing off up to 70-80% of obligations and statutory protection from enforcement actions during the procedure.
At Maneo, we help clients choose the optimal approach. We often begin with out-of-court negotiations, and if those do not produce results, we prepare documentation for pre-bankruptcy proceedings - without losing valuable time.
→ Learn more about our service for managing pre-bankruptcy proceedings.
→ Read our guide: Pre-Bankruptcy Proceedings in Croatia - How to Avoid Bankruptcy?
What Does the Financial Restructuring Process with Maneo Look Like?
The restructuring process is not a template - it must be adapted to the specific situation of each company. At Maneo, we apply a structured but flexible approach in six key phases:
1. In-depth analysis (Due Diligence) and assessment of the situation
The first step is to determine the actual situation. We analyse your financial statements - balance sheet, profit and loss account and cash-flow statement - as well as debt structure, due obligations and operating costs. The goal is to detect the main causes of the crisis: is the problem excessive debt, poor pricing policy, inefficient production, loss of market or something else?
2. Preparation of a financial and operational restructuring plan
Based on the analysis, we prepare a concrete action plan with clear timelines and measurable objectives. The plan includes:
- Operational measures - cutting unnecessary costs, optimising business processes, closing unprofitable units, rationalising employment
- Financial measures - proposal for loan rescheduling, debt repayment plan, sale of non-operating assets, collection of disputed receivables, proposal for refinancing through HBOR or other sources
- Cash-flow projections - detailed financial projections for 3-5 years proving that the plan is feasible and that the company can regularly service restructured obligations
3. Negotiations with creditors
This is the most sensitive and most important part of the process. As your advisers, we participate in communication with banks, key suppliers, the Tax Administration and other creditors. Together, we will convince them that the restructuring plan is realistic and that accepting a rescheduling or partial debt write-off is more beneficial for them than pushing the company into bankruptcy.
Our negotiation experience - after more than 1,000 pre-bankruptcy proceedings and countless out-of-court settlements - gives us the authority and credibility that accelerates agreement.
4. Implementation of agreed measures
Preparing the plan is only the beginning. Maneo remains by your side throughout the implementation process. We monitor implementation of operational and financial measures, help communicate with creditors during repayment and respond to any difficulties.
5. Controlling and cash-flow monitoring
We introduce strict controlling - regular monitoring of revenue, expenses and cash flows to ensure that the company follows the agreed plan. This supervision prevents the crisis from repeating and provides an early signal if corrections are needed.
6. Long-term stabilisation
After restructuring is successfully completed, we help you establish financial discipline for long-term stability - from setting up controlling systems to preparing a business plan for the next phase of growth.
Average process duration: 2-6 months for out-of-court restructuring, depending on the number of creditors and the complexity of the debt.
Are you ready to take control of the situation? Schedule a confidential introductory meeting →
What Are the Alternatives If Out-of-Court Restructuring Fails?
If the company has been blocked for too long or the debts are too large to resolve through informal negotiations, financial restructuring can be carried out through legally regulated frameworks:
Pre-bankruptcy proceedings. An official court procedure that enables account unblocking within a few days, a compulsory agreement with creditors under court supervision and the possibility of writing off a significant part of the debt. Maneo is the leading consulting firm in Croatia for managing pre-bankruptcy proceedings - we have participated in more than 70% of all pre-bankruptcy proceedings since 2012.
Bankruptcy plan. Even if the company has formally entered bankruptcy, a bankruptcy plan can be used to implement restructuring, save the healthy part of the business and avoid complete liquidation. This is an option when pre-bankruptcy proceedings have not succeeded, but the company still has an economically viable core.
Maneo has extensive experience in managing both of these procedures, as demonstrated by our numerous references and client testimonials.
Why Choose Maneo for Financial Restructuring?
When the survival of a company is at stake, there is no room for mistakes. You need a partner who understands both finance and law, and who has authority in negotiations with banks and government institutions.
Proven experience. More than 1,000 successfully managed pre-bankruptcy proceedings, 94% of settlements concluded and participation in over 70% of all pre-bankruptcy proceedings in Croatia since 2012. We hold the AAA Certificate of Creditworthiness Excellence, placing us among the top 5% of companies in Croatia.
Multidisciplinary team. Our team consists of 15 permanently employed specialists - economists, lawyers, attorneys, auditors and accountants - which means we cover all aspects of restructuring under one roof, from financial analysis to legal representation.
Realistic approach. We do not give false promises. If we believe a company cannot be saved, we will tell you clearly and propose the least painful exit - whether that is controlled bankruptcy or liquidation with protection of your interests.
Complete service - from analysis to settlement. We cover everything: due diligence, preparation of the restructuring plan, negotiations with creditors, court representation and implementation monitoring. You do not need to coordinate multiple different advisers.
Discretion and confidentiality. We understand that a financial crisis is a sensitive topic. All communication with us is strictly confidential, and our IT system has been developed according to the highest security standards.
Frequently Asked Questions (FAQ)
The price depends on the complexity of the situation - the number and type of creditors, the amount of debt, the type of procedure (out-of-court or pre-bankruptcy) and the condition of business documentation. We offer a free introductory meeting where we assess the situation and provide a transparent offer.
Out-of-court restructuring usually takes 2-6 months. Pre-bankruptcy proceedings have legally defined deadlines - from opening to voting on the restructuring plan, the process can take 4-10 months, depending on case complexity.
Yes, in most cases it can. By initiating pre-bankruptcy proceedings, the account is unblocked within a few days of the court decision, and enforcement actions are temporarily suspended. The key is that the blockade lasts less than 60 days; after that deadline, bankruptcy may be initiated ex officio.
Refinancing is the replacement of an existing loan with a new one, usually under more favourable terms. Restructuring is a broader concept that, in addition to financial measures (rescheduling, write-off, refinancing), also includes operational changes in the business - cost cutting, process reorganisation and changes to the business model.
In an out-of-court procedure - yes, the agreement must be voluntary. In pre-bankruptcy proceedings, the restructuring plan is approved by a majority of votes (51% by number and 66.7% by amount), which means that outvoted creditors must adapt to the decision of the majority.
Even in bankruptcy proceedings, there is the possibility of preparing a bankruptcy plan that can save the healthy part of the business. Contact us as soon as possible - every day in bankruptcy reduces the chances of a successful outcome.
Do Not Wait for an Account Blockade
Time is your greatest enemy in a financial crisis. The sooner we begin the restructuring process, the greater the chances of saving your company, preserving jobs and protecting your personal assets.
Contact us today for a fully confidential introductory meeting. We will analyse your situation, assess your options and propose concrete steps for exiting the crisis.