Complete the financial basis first
A reliable comparison is impossible without current liquidity, a 90-day forecast, the creditor structure and security interests. Secure these materials and record every open assumption.
Restructuring
Restructuring before insolvency: compare routes and prepare documents
Out-of-court workout, ReO or reorganisation proceedings: clear limits and the documents needed before choosing a route.
Your insolvency law team
BRANDAUER Rechtsanwälte
Insolvency law, Salzburg and throughout Austria
We review the procedural status, contracts, payment records and security, then explain which legal question needs to be addressed next.
18 July 2026, Mag. Bernhard Brandauer, Rechtsanwalt
Restructuring before insolvency is not a single procedure. An out-of-court workout, restructuring proceedings under the Austrian Restructuring Ordinance and reorganisation proceedings under the Insolvency Code differ in access, effect and court involvement.
The choice must therefore start with reliable figures and documents rather than a label. Current liquidity, short-term financial planning, the creditor structure, security interests and a coherent restructuring concept are central.
This overview supports preparation. Whether probable insolvency, imminent inability to pay or actual inability to pay exists requires a legal and financial assessment of the specific business.
Three routes compared
Out-of-court workout, ReO or reorganisation proceedings?
The routes pursue a restructuring objective but apply at different legal stages.
| Issue | Out-of-court workout | ReO | Reorganisation under the IO |
|---|---|---|---|
| Legal framework | Contractual agreement with participating creditors | Court restructuring proceedings under the ReO | Insolvency proceedings with an admissible reorganisation plan under section 167 IO |
| Starting point | Sufficient willingness of all necessary parties to negotiate | Probable insolvency and the objective of averting inability to pay while securing viability | Application to open insolvency proceedings and to adopt a reorganisation plan |
| Clear limit | No contractual binding effect for a creditor who does not agree | Only within the statutory scope and with an admissible, properly evidenced application | An Insolvency Code procedure, not merely preventive ReO proceedings |
| Core documents | Liquidity, creditor list, contracts, security and a credible proposal | Plan or concept, signed 90-day financial plan and required annual accounts | Admissible reorganisation plan and the information required for opening and continuation |
The table does not determine insolvency status or statutory eligibility.
Document precheck
What must be clarified before choosing a route?
The check structures the next review. It does not determine which procedure is available.
Discuss the specific matter with the firm.
Are current liquidity figures, short-term forecasts and a complete creditor list available?
Your answers
Review the documents
Open the readiness check →
Review an out-of-court workout
An out-of-court solution depends on agreements. Identify the creditors who must participate, the concessions that are realistic and the funding required until completion.
Review the ReO requirements
Section 1 ReO concerns probable insolvency and the objective of averting inability to pay. Section 7 ReO requires, in particular, a restructuring plan or concept, a signed 90-day financial plan and the required annual accounts.
Review reorganisation proceedings under the IO
Under section 167 IO, insolvency proceedings are designated as reorganisation proceedings when the debtor applies for opening and, with an admissible reorganisation plan attached, for adoption of that plan. This differs from preventive ReO proceedings.
Clarify insolvency status immediately
Labels cannot replace an assessment of the actual insolvency status. Liquidity, due dates, enforcement data and going concern assumptions must be current before a route can be recommended.
An out-of-court workout requires sustainable consent
An out-of-court workout requires sustainable consent
An out-of-court workout is not a separate collective court procedure. Flexible and confidential negotiations may be useful, but an agreement generally binds only those who consent to it.
Before negotiations, establish claim amounts, due dates, security, termination rights and the expected contribution of each participant. The German article Out-of-court restructuring and the ReO in Austria provides further detail.
The ReO requires probable insolvency and documentation
The ReO requires probable insolvency and documentation
Section 1 ReO states the objective. On the debtor's application, proceedings should enable restructuring to avert inability to pay and secure viability. The provision covers financial and operational measures, but requires a concrete business perspective.
Section 7 ReO makes the preparation specific. The application must include a restructuring plan or concept, a signed statement of expected income and expenditure for the following 90 days and the required annual accounts.
Reorganisation proceedings are insolvency proceedings
Reorganisation proceedings are insolvency proceedings
Section 167 IO governs the designation as reorganisation proceedings. The debtor must seek the opening of insolvency proceedings and, with an admissible reorganisation plan attached, adoption of that plan. Proceedings may also open where inability to pay is imminent, but they are not the same as ReO proceedings.
Self-administration, plan content, voting and continuation require separate review. The German article Reorganisation proceedings in Austria explains this layer in more detail.
Prepare these documents before selecting a route
Prepare these documents before selecting a route
The file should include current bank balances, outstanding and due liabilities, expected receipts, an integrated short-term liquidity forecast, annual accounts, management figures, a complete creditor list, contracts, security and pending enforcement or court proceedings.
Add an analysis of the crisis causes, operational measures, financing commitments and a coherent going concern assessment. The restructuring readiness check shows which document groups are organised and prepares the individual review of insolvency status and eligibility.
Important limit: Selecting a restructuring route must not delay action required because inability to pay has already occurred. Current status and any director duties require separate review.
FAQ
Frequently asked questions on pre-insolvency restructuring
Is the ReO the same as an out-of-court workout? +
No. An out-of-court workout rests on agreements. The ReO provides statutory court restructuring proceedings with their own conditions and application documents.
Are reorganisation proceedings already insolvency proceedings? +
Yes. Section 167 IO links the designation to an application to open insolvency proceedings and an admissible reorganisation plan. This distinguishes them from preventive ReO proceedings.
Which document is particularly important for the first review? +
A current liquidity statement showing due payments and available funds is central. It must be reconciled with the creditor list, security, forecast and restructuring concept.
Topics
restructuringReOreorganisation proceedingsout-of-court workout
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