As aresult of covid-19 the company went bankrupt

17/06/2020 Views : 249

Anak Agung Gede Suarjaya

Lately companies don't always make a profit, even many do out of business and threatened with bankruptcy or bankruptcy as a result of the covid-19 pandemic. Management a company must always remain vigilant so that it doesn't go out of business or go bankrupt.To prevent company bankruptcy there are several alternatives that can be done.

The impact of co-19 on the world economy was devastating. In the first quarter of 2020,

economic growth in a number of Indonesia's trading partner countries grew negatively, such as

Hong Kong -8.9, Singapore -2.2, European Union -2.7 and China -6.8. Indonesia is no exception

Until entering the month of June our economic conditions were being hit by difficulties because of the impact from the covid-19 pandemic. The worst scenario is predicted to minus Indonesia's economic growth 0.4 percent. Likewise, Bali, which relies heavily on the tourism sector, is also very dependent collapsed with the covid-19 pandemic due to the majority of the livelihoods of the Balinese people related to tourism. Even Bali tourism lost Rp 9.7 trillion every month. as a result not a few companies have experienced business downsizing (companies have become smaller) or if the financial difficulties are getting worse, even the company is out of business

or bankrupt. 

The company's financial difficulties can be caused by management mistakes company or can also be caused by factors that are really unexpected, such as natural and non-natural disasters, social disasters such as riots, possible fraud, sabotage. Corporate financial difficulties can be divided into several types, namely as follows, (1) Ecomic Failure, the economic failure of a company is described as imbalance between income and expenditure. Or in other words the cost of capital company is higher than the level of results obtained by the company. (2) Business Failure, what is meant by this failure is because of a series of wrong management decisions. So, financial difficulties that occur little by little. (3) Technical Insolvency, internal companies it is unable to meet financial obligations when they become due. Company

experiencing liquidity difficulties or being in an illikwid condition. (4) Insolvency in Bankruptcy, The company is said to have difficulty in solvency (insolvable) that is at the time of the obligation financial company has exceeded the market value of his wealth. (5) Legal Bankruptcy, if the company's prospects no longer provide hope, the company submitted a request

declared bankrupt determined through legal procedures.

Companies that experience financial difficulties do not mean they have to go bankrupt. There are difficulties finance that eventually caused the company to go bankrupt and there were companies that were experiencing financial difficulties, but it is not necessary at all to be linked to bankruptcy. That is, companies can be rehabilitated for the benefit of creditors, laborers, or owners capital in particular.Several alternatives to preventing bankruptcy can be pursued. That company experiencing financial difficulties does not automatically mean bankruptcy. Rescue efforts needs to be done because as is known together actually many stakeholders to the existence of a company, for example laborers, the public, creditors, owners of capital, even the government.

There are general alternatives that can be used to prevent them bankruptcy of the company, which is as follows:

(1). The company continues to operate by carrying out debt restructuring, which is an effort to change debt structure so that the company continues to be able to operate, able to meet obligations, and not detrimental to creditors.

(2) The company continues to operate by reorganizing. Reorganization is defined as

restructuring the new capital structure is considered feasible to support operations company. The method adopted is to create a capital structure that reduces fixed costs (principal and interest of the company so that the company can operate more loose. The reorganization procedure includes three steps. First, determine the value of the company after reorganization by capitalizing annual profits in the future comes with using a certain level of capitalization. Second, determine the structure new capital so as to reduce the company's fixed burden. Third, determine the value

old securities to be replaced with new securities.

(3) The company continues to operate by merging / consolidation. Merger means merge companies where one company will disappear and only one remains life. Consolidation is a merger of companies, in this case an old company lost and formed a new company.

(4) The company continues to operate by conducting Partial Selling / Davestiture, which is divestment companies, for example selling shares of a subsidiary or selling equity shares

company

(5) The company continues to operate by conducting a Strategic Alliance, which is a company seeking partners who have similar businesses in order to create mutually beneficial alliances within capital, production and marketing

(6) Companies are closed (bankrupt). In this case the company was liquidated and the company

declared bankrupt or closed. This liquidation can be done in two ways; (a) Liquidation mutual agreement, i.e. creditors decide it is better to request formal liquidation. That is, there is no need to go through the court so there is no need to pay peradlan fees. To take care of the fair distribution of company assets, creditors appoint trustee. (b) Liquidation through legal procedures, i.e. companies declared bankruptcy through court. Thus, the rights of the laborers, creditors, and company owners are in accordance with its priorities. In general the priority of rights starts with the workers, then
 creditors, and finally the company owner.
 

,
financial difficulties that occur little by little. (3) Technical Insolvency, internal companies
it is unable to meet financial obligations when they become due. Company
experiencing liquidity difficulties or being in an illikwid condition. (4) Insolvency in Bankruptcy,
The company is said to have difficulty in solvency (insolvable) that is at the time of the obligation
financial company has exceeded the market value of his wealth. (5) Legal Bankruptcy, if
the company's prospects no longer provide hope, the company submitted a request
declared bankrupt determined through legal procedures.

 

needs to be done because as is known together actually many stakeholders
to the existence of a company, for example laborers, the public, creditors, owners of capital,
even the government.
There are general alternatives that can be used to prevent them
bankruptcy of the company, which is as follows:
(1). The company continues to operate by carrying out debt restructuring, which is an effort to change
debt structure so that the company continues to be able to operate, able to meet obligations, and
not detrimental to creditors.
(2) The company continues to operate by reorganizing. Reorganization is defined as
restructuring the new capital structure is considered feasible to support operations
company. The method adopted is to create a capital structure that reduces
fixed costs (principal and interest of the company so that the company can operate more
loose. The reorganization procedure includes three steps. First, determine the value of the company
after reorganization by capitalizing annual profits in the future
comes with using a certain level of capitalization. Second, determine the structure
new capital so as to reduce the company's fixed burden. Third, determine the value
old securities to be replaced with new securities.
(3) The company continues to operate by merging / consolidation. Merger means
merge companies where one company will disappear and only one remains
life. Consolidation is a merger of companies, in this case an old company
lost and formed a new company.
(4) The company continues to operate by conducting Partial Selling / Davestiture, which is divestment
companies, for example selling shares of a subsidiary or selling equity shares
company
(5) The company continues to operate by conducting a Strategic Alliance, which is a company seeking
partners who have similar businesses in order to create mutually beneficial alliances within
capital, production and marketing
(6) Companies are closed (bankrupt). In this case the company was liquidated and the company
declared bankrupt or closed. This liquidation can be done in two ways; (a) Liquidation
mutual agreement, i.e. creditors decide it is better to request formal liquidation.
That is, there is no need to go through the court so there is no need to pay
peradlan fees. To take care of the fair distribution of company assets, creditors appoint
trustee. (b) Liquidation through legal procedures, i.e. companies declared bankruptcy through
court. Thus, the rights of the laborers, creditors, and company owners are settled
in accordance with its priorities. In general the priority of rights starts with the workers, then
creditors, and finally the company owner.

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