What is the purpose of an Out of Court Settlement?
The purpose of the Out-of-Court Settlement Facility is to give entrepreneurs the opportunity to settle their total debts at the same time for all their creditors which they can be banks, Revenues and Customs, private individuals etc.
The main objective is to give the opportunity to viable businesses that find it difficult to repay their debts and those in a state of imminent weakness. Through an economically rational settlement of debts that initially has the appraisal-proposal of a repayment plan of the requested company itself based on its actual repayment options.
Through a reasonable plan, a negotiated settlement with the creditors i.e. the individuals, the Banks, the State, and the Funds, which may well include generous interest rate reductions, extensions of the repayment period, freezing and write-offs of debts.