What is rehabilitation under law of insolvency?

Rehabilitation under insolvency law refers to a legal process aimed at restoring the financial viability of a distressed entity, allowing it to continue operations while addressing its debts. This process often involves restructuring the entity's obligations, negotiating with creditors, and implementing a viable plan to return to profitability. The goal is to balance the interests of creditors and the business, ultimately facilitating its recovery rather than liquidation. Successful rehabilitation can lead to a more sustainable business and a better outcome for all stakeholders involved.