Legal crisis management implies a rapid, strategic, and coordinated legal response in crisis situations with high risk and high publicity, in order to protect the legal, reputational, and operational interests of the organization. This includes working on court disputes, investigations initiated by state bodies, data leak incidents, product recall from the market, severe accidents and incidents, regulatory pressure, and political or regulatory uncertainties.

In the Georgian reality, legal crisis management implies both a response in accordance with the current legislation, as well as the correct legal management of relations with regulatory bodies, law enforcement structures, and other interested parties. Crisis management lawyers develop and implement integrated legal and communication strategies, the aim of which is to reduce legal responsibility, avoid undesirable administrative or governmental actions, protect brand reputation, and maintain the trust of partners and other interested parties.

A company should involve crisis management lawyers immediately when an unexpected crisis situation arises, which requires a rapid response in the first critical hours and days. Such cases include investigations initiated by state bodies or regulatory impact measures, high publicity labor disputes or accusations brought against managing persons, product recall. Problematic assets (distressed assets) are property, financial claims, or participation in a business, which are related to the financial difficulties of the debtor, insolvency, or the rehabilitation/bankruptcy process. Their value and realization perspective often depend on how the legal procedures of insolvency or forced execution are proceeding.

Problematic assets (distressed assets) are property, financial claims, or participation in a business, which are related to the financial difficulties of the debtor, insolvency, or the rehabilitation/bankruptcy process. Their value and realization perspective often depend on how the legal procedures of insolvency or forced execution are proceeding. In practice, problematic assets include non-performing loans (NPLs), secured and unsecured creditor claims, property burdened by mortgage or pledge, and assets undergoing the process of rehabilitation/bankruptcy or execution. Working with such assets requires the selection of a correct legal strategy, because it is exactly the procedures and the priority of claims that determine the recoverability and the final result.

Corporate restructuring within the framework of crisis management and the management of problematic assets implies a systematic review of the financial and operational structure of a company in a situation when the business faces financial difficulties, liquidity problems, or the risk of insolvency. The goal of restructuring is the stabilization of the business, the protection of the value of assets, and the balancing of the interests of creditors, investors, and other interested parties.

In this process, a change in the debt and capital structure, the postponement of debt or modification of conditions, the transformation of debt into capital, the realization or reorganization of problematic assets, as well as operational improvements directed at restoring profitability can be implemented. In crisis management, restructuring can be implemented both through the court, within the framework of insolvency or bankruptcy procedures, and out of court on the basis of agreements reached through negotiations with creditors and other interested parties, which often represents the main instrument of the effective management of problematic assets.