Restructuring & Insolvency

Corporate reorganisation and restructuring usually takes place when a company has problems of insolvency and bankruptcy, but also when the company requires changing in order to increase revenue or safeguard goodwill. Restructuring may take place legally, operationally or at ownership level with changes in key people, structure and objects. Such restructuring requires, in all cases, a reorganization plan. GMX may provide legal guidance towards the best reorganisation plan for a particular entity as well as prepare and assist with all necessary documentation for such restructuring to take place efficiently and promptly. Tax treatment may also be an important factor when deciding on a restructuring. The transfer of shares upon a restructuring of holdings within a group of companies may be exempt from stamp duty payments, while, upon the satisfaction of certain criteria, in the case of share transfers taking place between companies which are controlled by more than 50% of the same shareholders, no gain or loss should be deemed to arise and therefore, the transaction would not be subject to tax.

Therefore, a corporate reorganisation or restructuring option should always be taken into consideration in order to harness new corporate opportunities in order to curtail costs and increase profit. Transferring assets, amending group company structures, executing cross-border transactions such as mergers or creating a branch in Malta are just some of the options at play.

Malta also has re-domiciliation legislation which is applicable to all types of companies, from private limited liability companies, to securitisation vehicles. Such re-domiciliation may take place from both on and off shore jurisdictions and is supervised and must be approved by the MFSA. In this way, foreign companies may take advantage of Malta’s thriving economic and financial opportunities while preserving their track record, reputation and continuity.