Review article
https://doi.org/10.32676/n.10.5
Ensuring Successful Business through Effective Restructuring out of Bankruptcy Proceedings
Lana Hrkač
; Poslovna ulaganja Ltd
Davor Labaš
; University of Zagreb, Faculty of Economics and Business
Abstract
This paper studies, still underutilized, application of the possibility of restructuring of a firm even after
entering bankruptcy proceedings. The aim is to investigate and describe how the development and use
of a quality restructuring plan can help a firm recover and achieve competitive results again. At the
same time, restructuring through entering bankruptcy proceedings and re-growing the business is an
extremely demanding process. However, many stakeholders have advantages from it, so accordingly, the
restructuring of the business should not only be in the interest of the owners but also of a large number
of primary and secondary stakeholders. Also, the aim is to present the importance and connection of
the implementation of quality corporate governance with continuous monitoring of financial indicators.
The empirical analysis was conducted based on an in-depth semi-structured interview with the CEO
who made contribution to the overall restructuring of the company, and the thorough overview of the
business was supported by analysis using Altman Z-score and BEX models. The analyzed example
exhibits that when the firm operates in accordance with the mechanisms of corporate governance, it will reduce its existential threat to a minimum. In addition to effective corporate governance, continuous
financial analysis that can warn of potential difficulties and indicate problems in a timely manner is
crucial. The selected trading company is an excellent example of how successful restructuring of a
firm can help achieve significant success for both the firm owners, as well as for the society as a whole.
Keywords
bankruptcy, restructuring, corporate governance, synthetic indicators
Hrčak ID:
324394
URI
Publication date:
19.12.2024.
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