Out of Court Workout

Definition: an Out of Court Workout is an attempt by the debtor to solve a financial problem through a consensual agreement with creditors outside of the court procedures. This alternative solution is based on two foundations: the company's creativity work on one hand, and the extent of creditors' willingness to cooperate with it to overcome its crisis on the other hand. The approval of all creditors is essential to make it work; a refusal by one or two of them may hinder it. So the company ought to work actively as a team to ensure its success.

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More on corporate law: Bankruptcy, Corporate Haven, Preventive Composition.

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