Restructuring of the enterprise is carried out by change of its organizational and production structure for the purpose of the adaptation to the changing market conditions, concentration of efforts of the enterprise on development of those fields of activity which bring to the enterprise the main part of profit.
Careless insolvency was the general case of insolvency. For recognition of false or unfortunate insolvency the court needed to be guided by proofs of certain circumstances.
LIPS divided insolvency cases into 3 categories: insolvency unfortunate, careless and false. The general case of insolvency was insolvency careless. For recognition of insolvency unfortunate or false it was necessary to prove existence of certain circumstances.
The competitive managing director enters possession of property and protects it. Search of property of the debtor who is at the third parties is at the same time carried out. In Germany "public arrest" is imposed such property, that is any person owning any property of the debtor is obliged to report about it to the competitive managing director and not to transfer property to the debtor.
The charter of Legal proceedings Trade (further - LIPS) considered generally insolvency of natural persons, recognizing that "not only the physical, but also legal entity can be declared insolvent". Insolvency such situation admitted, "when someone has no cash on satisfaction of the debts in time and there are signs that its debts are irredeemable, that is its all property for payment in full will be insufficiently" (the Art. of 386 LIPS).
During the period of supervision no property of the debtor, except cases of usual conducting business operations can be aloof. Besides, during the specified period any employee of the enterprise debtor, except exceptional cases when this dismissal is vital for preservation of the enterprise cannot be dismissed.
The court made primary actions quickly enough - calling the debtor and, having listened to his explanations concerning failure to pay by it debts and possibility of their compensation soon, without finding an explanation reliable on the same day took out definition, recognizing the debtor insolvent and, as a rule, taking him into custody. Detention could not follow if insolvency admitted court "unfortunate".
During the supervision period the third parties can make offers on an occasion of purchase of part of the enterprise debtor or entirely it. Each such offer has to be considered when scheduling reorganization.