SIREVE integrates the set of strategic measures undertaken by the government for the revitalisation and restructuring of companies. It aims to improve the conditions for the recovery of companies in difficulty, which due to circumstances have seen their economic and/or financial structure deteriorate, but which still have potential viability.
This procedure is based on an agreement between the company and some or all of its creditors, representing at least 50% of the total debts of the company.
The operation of SIREVE is ensured by IAPMEI, which assumes the role of facilitator and promoter in the whole process.
The main stages of the process are:
▪ Application by the company through an electronic form;
▪ Within 15 days, IAPMEI issues order of acceptance of the application; refusal of the application, or an invitation to perfect the application, if there is lack of information necessary to complete the evaluation;
▪ After order of acceptance of application, IAPMEI analyses the viability of the procedure, issuing a technical report within 30 days;
▪ IAPMEI communicates to the court the contents of the order of acceptance of the application to SIREVE and, if appropriate, the termination of the procedure;
▪ IAPMEI promotes the necessary contact between the company and the creditor group identified, with a view to achieving agreement that allows for the recovery of the company.
The deadline for conclusion of the procedure should not exceed three months from the date of the order of acceptance. This period may be extended by one month, upon IAPMEI approval, following substantiated request from the company or any of its creditors.
The order of acceptance of the application under SIREVE suspends, until the conclusion of the procedure, any further executive actions for payment of debts or other actions designed to fulfill financial obligations, brought or to be brought against the company.
The request for the use of SIREVE by the company suspends the deadline for the submission of insolvency.
The application must contain: the grounds of appeal to SIREVE; identification of the parties to participate in SIREVE; identification of the creditor or creditors representing at least 50% of the company-listed debts of analytical balance sheet, which should report a net worth not older than three months prior to the date of submission of application; the content of agreement sought; a business plan.
The company must show that at the end of five years it will achieve a balanced economic and financial situation, with a financial autonomy ratio exceeding 15% or 20%, depending on whether it is a small and medium enterprise or a large enterprise, respectively, and a general liquidity ratio greater than 1.05.
In case of ‘micro-enterprise’ – a company that employs less than 10 persons and whose annual turnover or total annual balance sheet does not exceed €2 million – the fee to use SIREVE is €260. The fees for medium companies – employ up to 250 persons and have an annual turnover less than €50 million – are € 500. For the remaining companies, the fees are € 1,500.
By Dr. Eduardo Serra Jorge
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Dr Eduardo Serra Jorge is founding member, senior partner and CEO of lawyers firm Eduardo Serra Jorge & Maria José Garcia – Sociedade de Advogados, R.L., created in 1987.
In his column, he addresses legal issues affecting foreign residents in Portugal.
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