Restructuring possibilities companies strengthened
26 June 2018
You have successfully navigated the first phase of starting your own business and now you have reached the next level. You have to make the right financial and legal decisions. Unfortunately that are not always the right decisions. What options do you have if your company is distressed?
Update on the Dutch scheme of arrangement
As a development in the legislative program ‘Recalibration of Bankruptcy Law’, the Dutch legislator seeks to introduce pre-insolvency measures in the Netherlands. On September 5, 2017 the Dutch justice department published a draft bill which introduces distressed companies a new debtor-in-possession restructuring tool. The Bill contains a proposal for an amendment to the Dutch Bankruptcy Act (Faillissementswet) which enables a distressed company to present a restructuring plan outside of formal bankruptcy proceedings, a process previously unavailable under Dutch insolvency law. This legislative proposal is one of the measures proposed in the context of a more comprehensive legislative program with the objective, amongst others, to strengthen the restructuring possibilities for companies.
In this article Robert Franken will elaborate more about the:
- The current practice
- When and how to offer a restructuring plan
- To whom the plan can be offered
- The content of the restructuring plan
- The classes of creditors and voting
- The court confirmation
Download the article by Robert Franken, senior manager BDO Legal, and learn more about this new amendment.