Since 2 years ago one can hear numerous criticisms and negative comments on the recently-introduced pre-bankruptcy system. As usual, one can hear mostly demagogy, ignorance of the system and the lack of self-criticism and self-assessment of one’s own responsibility. Specifically:

• After the pre-bankruptcy settlement, the management and ownership structure remains the same – it is mostly true, but for such a state the very creditors are responsible – nobody is stopping them (on the contrary, the Law enables them) to turn a part of their claims into the capital and to take over the management of the debtor onto themselves; however, this requires a more active approach and the absence of emotions, as well as getting focused on business activities,
• Pre-bankruptcy settlements are frauds made towards creditors – if this is true, there are courts (which are known for their (in)efficiency), but this is not the problem of the mere institution of the pre-bankruptcy settlement; the question arises as to why many of the creditors used to work for years with such „deceivers“,
• The fact is that a significant number of settlements is made too late, and that some of them don’t make sense if the resuming of business operations is questionable; however, in such cases the alternative solution is to declare bankruptcy, the effects of which have been catastrophic throughout our corporate history,
• The issue which is rarely addressed is a disproportionate role of commercial banks which, through lienors (which is less disputable) and co-debtors (which is a bigger problem) can really have a voice over the other creditors and „enable“ them to influence the process,

It is certain that specific laws and regulations should be modified and adapted. However, the most authoritative ones for the proposals of such regulations are the business people, and not the civil servants or the offended legal lobby. The recommendation for the business sector is that the settlements, even in the present regulatory form, are a good and possible solution, but that one should take into consideration several prerequisites which are important for its successful implementation. They are as follows:

• The sustainability of the debtor’s business operations and activities,
• Sufficient working capital to operate throughout the settlement process,
• The actual implementation of the restructuring process, as soon as possible.

Without the above-mentioned, any kind of model of pre-bankruptcy settlement would hardly be sustainable in the long run.