Equity replacing loan
A loan granted by a shareholder during a crisis that is treated as equity replacing under section 1 EKEG.
Under section 1 EKEG, a loan granted by a shareholder to the company during a crisis is equity replacing. Classification requires examination of the loan, the lender's shareholder status and the point at which the crisis existed.
Not every form of shareholder financing is covered: section 3 EKEG excludes certain short-term credit and distinguishes credit from the provision of an asset or a service. The directors and shareholders in a crisis hub sets out the review framework; the article on shareholder loans during a crisis under the EKEG provides further detail.
More information
General guidance, not advice on an individual matter.
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Repayment restriction
The statutory restriction limiting recovery of an equity replacing loan until the company has been rehabilitated.
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Reorganisation proceedings
Insolvency proceedings designated as reorganisation proceedings when the conditions of section 167 IO are met.
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Restructuring
Measures concerning assets, liabilities, capital or operations intended under the ReO to avert insolvency and secure viability.
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Address
BRANDAUER Rechtsanwälte GmbH Giselakai 51 5020 Salzburg
Phone
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