Business restructuring proceedings

Statistics Finland publishes statistics on the business restructuring cases pending and concluded at district courts. Pending restructuring cases refer to the restructuring petitions concerning enterprises, entrepreneurs or corporations filed during the calendar year. The first business structuring petition filed in the calendar year is recorded in the statistics as a pending restructuring case. Other petitions received during the calendar year concerning the same enterprise, entrepreneur or corporation show in the statistics as concluded business restructuring cases. Several creditors may file a business restructuring petition concerning the same enterprise during a year. The number of petitions is always higher than the number of pending business restructuring cases. In respect of single-establishment enterprises the data on business restructuring by area in these statistics are based on the municipality of location of the establishments. Location of establishments also determines the area for those multiple-establishment enterprises whose activity is all located in the same municipality. Enterprises operating in several municipalities are classified according to their municipality of domicile. In other cases, data on the area are determined by the municipality of domicile of the debtor. The data concerning enterprises’ establishments and municipalities of domicile are obtained from Statistics Finland’s Business Register. New legislation on the restructuring of business debts entered into force in Finland on 8 February 1993, with the aim of improving the economic position of business enterprises that have run into financial difficulties. Business restructuring is an alternative to bankruptcy. The procedure aims to ensure continuity of the activity of a viable enterprise. It is left to the court’s discretion whether an enterprise would be viable after restructuring.