Subject matter of this thesis is the insolvency proceedings with the emphasis on the continuation of the business activities of the company which had initiated the insolvency proceedings. According to the case-law, over 90 % of the companies which initiated the insolvency proceedings, result in winding-up proceedings and in asset fire sales. Creditors generally receive maximum of 20 % of their claims. Therefore, the case of insolvency proceedings in NAUTA LAMJANA d.d. Kali has been considered in this thesis as an example of a company that had initiated insolvency proceedings and continued with its core business activities during insolvency, with all workers' claims paid in full and closed the insolvency proceedings successfully with the continuation of its business activities. A quality insolvency plan was drafted based on which eventually 50 % of creditors' claims will be settled, and the same creditors have continued with their business cooperation with the shipyard's management up to this date. Thesis is based on data analysis obtained from the insolvency plan as well as from company's business records from years following the closing of the insolvency proceedings. Analysis of the publicly disclosed balance sheets of NAUTA LAMJANA d.d. Kali business activities in the last three years which has in the meantime transitioned from joint venture company to a limited liability company, show positive operations balance, while settling the claims relating to the insolvency estate and the insolvency plan. It is the only example of the shipyard in the Republic of Croatia where the ownership has changed from state-ownership to private ownership with all of its liabilities arising from the period when state and workers had full company’s ownership. Intra-company collective agreement and workers' rights arising out of it prevented the private owner to reduce costs during recession period via redundancy. The insolvency proceedings and insolvency plan resulted with the business activities operating with rational expenses with regards to the number of employees and all other expenses pertaining to a shipyard. This insolvency plan is also an example that a quality management of insolvency proceedings through Creditor’s Assembly and Council, given the quality position on the market, can retain the ownership of the company and assure the continuation of profitable business activities.