Financial Distress of the Company and the Judicial Authority in Rescuing It

Abstract

          The financial turmoil that affects a company at any stage of its life can have negative repercussions related to the existence of the company as a standing and independent entity. Therefore, the search for a way that enables the commercial company to continue its existence is very important. Declaring the bankruptcy of the company should be the last resort, as it entails harsh solutions that affect not only the company but also everyone who has an interest in it, whether directly or indirectly. The company cannot be rescued from financial turmoil and pulled out of distress except through other entities that work to find the appropriate way to rescue it, and one of these entities is the judiciary. The judiciary plays a crucial role in rescuing the company from the risk of collapse, due to its neutrality and its competence in resolving disputes. Considering that there are conflicting and varying interests directly or indirectly related to the troubled company, granting the judiciary such authority necessitates a review of the legal texts and any shortcomings therein, in order to achieve the desired goal of our research.