The legal framework for early intervention to rehabilitate enterprises at risk of insolvency under the 2025 Law on Rehabilitation and Bankruptcy

The 2025 Law on Rehabilitation and Bankruptcy establishes, for the first time, an independent rehabilitation procedure allowing intervention before an enterprise becomes insolvent. This study employs legal analysis, systematization, and comparative methods to clarify the early intervention mechanism and assess its innovations and remaining limitations. The findings show that the Law increases opportunities for enterprise rehabilitation by allowing procedures to be initiated at the stage of insolvency risk and by providing temporary protection to preserve business value. However, shortcomings remain concerning triggering conditions, creditor protection, new financing, and criteria for evaluating rehabilitation plans. The study therefore proposes legal improvements to enhance the effectiveness, fairness, and practical operation of the early intervention mechanism.