Insolvency and Restructuring

Other areas of expertise:

In today’s business environment, facing financial difficulties is not uncommon. Economic crises, market shifts, supply chain disruptions, and intensifying competition lead many companies to re-examine their business models. In such circumstances, restructuring may be the key legal mechanism for preserving value and enabling a new beginning. Sometimes, where no other solution is viable, declaring insolvency becomes reality.

Restructuring gives the healthy parts of a business the chance to survive, enables agreements with creditors, and allows operations to continue on a sustainable basis. On the other hand, insolvency provides a lawful and transparent way to wind down operations, settle obligations to the greatest extent possible, and protect the rights of all parties involved. In both cases, experienced legal advisors play a crucial role in safeguarding clients’ interests and navigating complex procedures.

Why Zunic Law for Insolvency and Restructuring?

Decades of experience – our team has worked on numerous cases of financial restructuring, reorganizations, and bankruptcy proceedings, representing both creditors and debtors.
End-to-end support – we assist clients from the first signs of financial distress, through the preparation of a restructuring plan, to representation in court proceedings.
Multidisciplinary team – we combine expertise in corporate, financial, and labor law, with deep experience negotiating with banks, investors, and public authorities.
Focus on value preservation – our approach is not merely legal but strategic: the goal is to preserve as much business value as possible and minimize loss.
International perspective – we follow practice in the EU and the region and support companies operating across borders.

Our Approach: Advisory Aimed at Stabilizing Operations

Our approach to insolvency and restructuring is based on early issue-spotting, timely action, and proactive planning.

We start by analyzing the company’s financial position, identifying obligations, contractual risks, and potential legal disputes.

We then craft a clear plan, whether sustainable restructuring through agreements with creditors, business reorganization and cost optimization, or, where necessary, the initiation of bankruptcy (insolvency) proceedings.

Throughout the process, we represent clients before courts, banks, creditors, and regulators, ensuring every step complies with the law and serves our clients’ best interests.

Our support also covers the period after restructuring or during implementation of a reorganization plan, so that the business remains stable and aligned with agreed obligations.

Key Practice Areas in Insolvency and Restructuring

Debt rescheduling
Bankruptcy proceedings
Reorganization through a court-approved plan
Representation of creditors
Acquisition of assets from bankruptcy estates
Cross-border bankruptcy and restructuring
Out-of-court settlements with creditors
Workforce and employment restructuring
Crisis management and liquidity restoration
Restructuring of financial institutions and banks
Restructuring of multinational companies
Tax advisory in restructuring and bankruptcy proceedings

Below are the details by area, with an emphasis on the concrete outcomes we deliver.

1) Debt Rescheduling

Advising clients on agreements and negotiations with creditors to reschedule obligations.
Preparing and implementing reorganization plans that allow operations to continue on a sustainable basis.
Helping optimize business processes, reduce costs, and increase efficiency.
Working to preserve jobs and company value for owners and creditors.

Result: stabilization of operations and a new chance for long-term viability.

2) Insolvency Proceedings

Representing clients at all stages of bankruptcy, whether as debtors, creditors, or investors seeking to acquire assets.
Assisting with preparation and filing of petitions to open bankruptcy or defending against unfounded petitions.
Coordinating with insolvency administrators, courts, and creditors to ensure fair conduct of proceedings.
Advising on asset sales, collection of receivables, and business wind-down.

Result: lawful and efficient closure of operations with maximum protection of clients’ interests.

3) Reorganization Through a Plan

Preparing reorganization plan proposals and representing clients in the court approval process.
Supporting negotiations with creditors and securing the requisite majorities for plan adoption.
Overseeing plan implementation and resolving disputes that arise during execution.
Providing ongoing legal support to company management throughout the reorganization.

Result: continued operations in controlled conditions, with gradual fulfillment of obligations and strengthened stability.

4) Representation of Creditors

Representing creditors in bankruptcy and reorganization proceedings, by protecting their rights and interests.
Preparing claim filings and representing creditors on creditors’ committees.
Negotiating optimal recovery terms and overseeing reorganization plan implementation.
Helping creditors assess realistic recovery prospects.

Result: maximum protection of creditors’ interests and efficient enforcement of their rights.

5) Acquisition of Assets from Bankruptcy Estates

Advising investors interested in acquiring assets in bankruptcy.
Assessing the legal status of assets, risks, and potential for further development.
Preparing documentation and participating in negotiations.
Representing clients before courts and insolvency bodies.

Result: secure and transparent acquisition of bankruptcy assets, with the buyer’s interests protected.

6) Cross-Border Bankruptcy and Restructuring

Helping companies operating in multiple jurisdictions comply with international insolvency rules.
Coordinating proceedings in Serbia with those abroad.
Advising foreign investors involved in proceedings taking place in Serbia.
Strategic advice on recognition and enforcement of foreign judgments.

Result: efficient resolution of complex situations involving multiple countries and legal systems.

7) Out-of-Court Settlements with Creditors

Advising companies on negotiating directly with creditors to reach agreements without formal institutional proceedings.
Preparing settlements covering debt rescheduling, partial write-offs, or debt-to-equity conversions.
Moderating negotiations and ensuring legal certainty of the agreements reached.

Result: fast, flexible, and discreet resolution of financial difficulties while preserving creditor relationships.

8) Workforce and Employment Restructuring

Assisting companies with restructuring that includes changes to workforce and corporate structure.
Advising on lawful termination procedures and measures to mitigate employment dispute risks.
Advising on social programs and compensation measures for employees.
Supporting management in interacting with unions and public authorities.

Result: sustainable and lawful workforce restructuring without additional reputational or legal risk.

9) Crisis Management and Liquidity Restoration

Analyzing the financial situation and helping management secure short-term liquidity.
Advising on negotiations with banks, investors, and suppliers to stabilize operations.
Involving financial and business consultants to create a comprehensive recovery plan.
Developing crisis strategies to bridge the most critical period.

Result: stabilization of operations and gaining time for longer-term restructuring.

10) Restructuring of Financial Institutions and Banks

Assisting banks and other financial institutions with reorganization and business consolidation.
Advising on sales of non-performing loan (NPL) portfolios.
Coordinating negotiations with regulators and competent authorities.
Participating in the preparation and implementation of recovery and resolution plans.

Result: safe and compliant implementation of complex financial restructurings.

11) Restructuring of Multinational Companies

Coordinating the restructuring of groups operating in multiple countries, including alignment with different legal regimes.
Assisting with the recognition of foreign decisions and resolving conflicts between national systems.
Supporting foreign investors entering or exiting the Serbian market.
Working with partner firms abroad on complex international projects.

Result: unified and efficient restructuring of international groups without legal gaps or conflicts.

12) Tax Advisory in Restructuring and Bankruptcy

Analyzing tax implications of reorganizations, bankruptcy, or asset sales.
Advising on tax relief opportunities, rescheduling of tax liabilities, and avoidance of double taxation.
Assisting in negotiations with tax authorities and representing clients in proceedings.
Providing strategic advice to ensure financially optimal restructuring.

Result: reduced tax burden and prevention of additional costs during restructuring and bankruptcy.

What Collaboration with Us Looks Like

Initial assessment – we analyze the financial position and legal risks to determine whether restructuring, reorganization, or bankruptcy is the right solution.
Strategy definition – we develop a clear step-by-step plan and set priorities together with the client.
Documentation preparation – we draft and file all necessary documents with courts, regulators, and creditors.
Representation in proceedings – we represent clients before all relevant institutions, protecting their interests throughout the process.
Ongoing support – we remain engaged after the process comes to a closure, so the business stays stable and aligned with assumed obligations.

Examples of Completed Projects (Non-Confidential)

Restructuring of a domestic manufacturing company – led negotiations with creditors and prepared a reorganization plan that achieved debt rescheduling and continued operations while preserving jobs.
Acquisition of assets from bankruptcy – advised an investor on acquiring assets from a failed company, including legal due diligence, document preparation, and representation before the court.
Cross-border bankruptcy – participated in proceedings involving companies from Serbia and the EU, ensuring coordination and recognition of foreign decisions.
Representation of creditors in a reorganization – represented a group of banks in negotiations and the plan approval process for a large trading company, aiming to secure the highest possible recovery.

Vitomir Žunić

Marija Medić Racić

Kristina Jevtić

Frequently Asked Questions (FAQ)

1. When is the right time to initiate restructuring?

The earlier, the better, ideally as soon as the first signs of difficulty in meeting obligations appear, such as late payments to suppliers, illiquidity, or overreliance on short-term financing.

Timely restructuring allows the company to preserve key processes, reorganize debt, and secure additional capital. The sooner the process starts, the greater the chances of avoiding bankruptcy and continuing operations in a more stable form.

Our team helps clients at this stage to craft a realistic plan and communicate with creditors in time.

2. Is bankruptcy always the end of the business?

Not necessarily. Bankruptcy is often perceived as the end of a company’s journey, but it can also serve as a legal mechanism for reorganization.

During bankruptcy, it may be possible to sell underperforming assets, reduce debt, and bring in new investors to take over parts of the business.

In practice, this means that even after opening bankruptcy proceedings, certain segments can continue to function and generate revenue.

Our task is to identify when bankruptcy can be an opportunity for a new beginning rather than merely the final step.

3. What role do creditors play in restructuring and bankruptcy?

Creditors have a central role because they hold the claims. They participate in preparing and voting on the reorganization plan, decide on the extent and method of recovery, and monitor implementation of the assumed obligations.

Their cooperation and willingness to compromise are decisive for success.

In restructuring, creditors may obtain better recovery terms than in a standard bankruptcy, which is why it is crucial to involve them from the outset.

Our team represents the interests of both creditors and debtors to ensure a sustainable and fair outcome.

4. Can assets be acquired in bankruptcy without risk?

Acquiring assets from bankruptcy can be an attractive opportunity, but it carries risks without thorough legal analysis.

Before the purchase, it is important to check whether there are encumbrances, disputed rights, or unresolved obligations attached to the assets.

Our team conducts due diligence of the documentation and sale process so that buyers can be confident the assets are free from potential legal obstacles.

This ensures the transaction is secure, transparent, and favorable for the investor.

5. What is cross-border bankruptcy?

Cross-border bankruptcy involves companies, creditors, or assets from multiple countries.

In such cases, it is necessary to coordinate different legal regimes and ensure that decisions made in one jurisdiction are recognized in another.

This often requires cooperation with foreign courts, insolvency administrators, and regulators, as well as application of international conventions.

Our team has experience in proceedings involving foreign creditors or assets abroad, ensuring that clients’ interests are protected on a global level.