International Commercial Law

Lecture 17.

Quasus (30 min)

Please advise the shareholders of RW how to proceed in this situation and what
could be the potential legal solutions to restore the company’s operation or
solve the situation otherwise.

Shareholders should contact the bank they have contract and make a new contract for a
bigger sum, so RW can pay their crucial debts, as well as pay wages to their employees,
otherwise the company will face liquidation. After they solve this problem with their debt,
they should start looking into their working force, maybe 150 employees are too many
for them, and at least try to lessen it even a little bit by firing least necessary stuff.
Furthermore, they could try to make a contract with some construction firms, so they are
main partners for them as a plywood supplier for new project buildings, so they can gain
some profits, as well as have stable partners, that RW can rely on. If the partnerships are
successful, and they have got some good profits, then they can try to go into Baltic
market with their plywood material, so they have even wider options for them as a
supplier. Moreover, the partnerships they would do would be a big step for their
company, as well as, bank could see that RW don’t want to face liquidation, but, keep
operating as a great plywood supplier.