Companies that are unable to pay their debts can be declared bankrupt or undergo restructuring. The Swedish National Audit Office has examined the central government’s efforts in such insolvency proceedings. The overall conclusion is that while proceedings are mainly effective, there are some shortcomings that should be addressed.
Shortcomings have come to light regarding the management of approved trustees in bankruptcy and administrators. In Sweden, there is no authorisation for insolvency practitioners. However, the district courts’ and Swedish Enforcement Authority’s management of administrators provides a form of informal authorisation, which leads to duplication of efforts and shortcomings in terms of consistency and legal…