Suspension of Proceedings
Profitable company, but with liquidity problems, is entitled to request from court, to change their status to a company that is in “suspension of proceedings”.
Companies that reach a state of insolvency (or close thereto), have accumulated large debts, including the inability to payment of wages and social benefits for workers, deferral of payments to suppliers, banks exceeded, can enter according to Section 350 of the Companies low to process of “Suspension of Proceedings”.
The work is done in collaboration between a CPA and a lawyer.
The goal is to enable the Company conducted business with her usual form, without dealing with past debts, until the company reached the desired streamlining and regulating its obligations.