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Informal workout: a company may come to an out-of-court agreement with its major creditors for the rescheduling of the company's debts and overall-rescheduling. Insolvency is not required to negotiate an informal workout.

Companies may seek relief from creditors in cases of insolvency due to illiquidity or over-indebtedness, and in cases of apparent threatening insolvency. Debtors may also petition the court to order a protection moratorium, during which insolvency cannot be declared. Stay effects of the impending insolvency are retained in such cases.

A company may seek relief from its creditors, either by filing for bankruptcy (and for the grant of protective measures until the issuance of the decision declaring bankruptcy), in case of either current or threatened cessation of payments, or by pursuing one of the two pre-bankruptcy procedures provided for by the Greek Insolvency Code (GIC): rehabilitation or special liquidation. In order to file for rehabilitation, a company must be in a situation of current or threatened general inability to perform its due monetary obligations, while to file for special liquidation, current or threatened cessation of payments is a prerequisite.

As a general rule, a company may be declared insolvent (concurso mercantil) when it has defaulted in its payment obligations to two or more creditors, and on the date of filing of the insolvency petition: (i) its due obligations that have been delinquent for more than 30 days represent 35% or more of its total outstanding obligations; and/or (ii) it does not have sufficient liquid assets (cash and cash equivalents, such as bank deposits and other receivables with a maturity of no more than 90 days, or securities that may be sold within 30 days, in each case from the date of filing of the insolvency request) to pay for at least 80% of its obligations that are due and payable on such date.

According to Republic Act 10142, or the Financial Rehabilitation and Insolvency Act of 2010 (FRIA), section 12, a company may seek relief from creditors by filing a petition for voluntary rehabilitation if it is: (i) insolvent; or (ii) unable to pay its obligations as they become due.

The US Bankruptcy Code (Code) does not require a company to be insolvent to seek relief from creditors and reorganise as a going concern.

The company may seek relief from creditors only in cases of suspension of debt payment obligation (PKPU), not in cases of bankruptcy.

The Debtor Rehabilitation and Bankruptcy Act (DRBA) governs bankruptcy proceedings and reorganisation proceedings in Korea. In this response, bankruptcy proceeding refers to the liquidation proceeding prescribed under the DRBA, reorganisation proceeding refers to the reorganisation proceeding prescribed under the DRBA, and insolvency proceeding refers collectively to a bankruptcy proceeding and a reorganisation proceeding

A debtor in financial distress – either insolvent or with negative equity – can request a moratorium and initiate composition proceedings by submitting a provisional restructuring plan to the competent composition court. The latter will, upon a summary examination of its merits, grant a provisional moratorium if it comes to the conclusion that a composition plan may be achievable. It will reject the moratorium, if it finds that there are obvious indications that the plan will most likely fail. The moratorium is first granted on a provisional basis with a maximum duration of four months and is not published if the debtor so requests and the interests of the creditors and other third parties, if any, are sufficiently protected. The court can grant a final moratorium of four to six months (which needs to be published), provided it considers the chances of achieving a composition agreement are sufficiently realistic. If the restructuring during the (provisional) moratorium is successful and no composition agreement is necessary, the debtor can file for a suspension of the moratorium and thus no composition proceedings follow.