Are the commercial contracts worth the paper they are written on?

Not necessarily, the answer is.

Estonia has recently enacted the Rehabilitation Act which gives broad powers to the composition of the creditors. Since the decision is made by the qualified majority of creditors, you may well find yourself in a much worse position that in insolvency just because the majority of creditors voted in that way. Bad news is that the composition applies even to creditors, which claims are secured by the pledge or mortgage.

Challenging the rehabilitation proceedings may be difficult so it remains to be seen how the Rehabilitation Act will survive in the case law.

For more information on how you the rehabilitation may affect you, please feel free to contact us.