Restart after bankruptcy

Bankruptcy does not always have to mean the end of all business activities. Sometimes it creates room for a restart, for example because valuable parts of the business can be continued, customers can be retained or assets, employees or know-how can be used again.

A restart may be interesting for third parties that want to take over activities, but also for the management or shareholders of the bankrupt company. In all cases, speed is important. At the same time, careful consideration must be given to exactly what is being taken over, which obligations remain behind and which risks are attached to the transaction.

Bidding for parts of the business

In a bankruptcy of some size, the trustee often organises a bidding process. Interested parties then receive information about the business under confidentiality, such as the activities, assets, customers, employees and possibilities for continuation. On that basis, they can determine whether a bid makes sense and under which conditions.

Preparing a bid properly

Anyone who wants to participate in a bidding process must be able to act quickly, but also remain sharp. Is the information from the trustee sufficient? Which assets, contracts or activities are covered by the bid? Will employees be taken over? And which conditions make the bid both attractive and responsible?

The trustee compares the bids and usually focuses primarily on the interests of the creditors. The amount of the bid often plays a major role, but other circumstances may also be taken into account, such as speed, certainty of payment, preservation of employment or the chance that activities will be continued successfully. It is therefore important that a bid is not only financially sound, but also clear and convincing.

Guidance with a restart

LVH Advocaten guides entrepreneurs through restart transactions after bankruptcy. We assess the information, think along about the bidding strategy and assist in negotiations with the trustee. Because several lawyers at our firm also act as trustees, we know the playing field from both sides. This helps to assess opportunities, risks and expectations realistically.

Are you considering a restart after bankruptcy or do you want to participate in a bidding process? Feel free to contact us. We will help you quickly determine what is possible and how to prepare your bid properly, both legally and practically.

• Opposition and appeal in bankruptcy (insolvency law subpage)

Has your company been declared bankrupt? Then speed is crucial. The deadlines for challenging a bankruptcy order are short and the consequences for the business, directors and creditors are significant. It is therefore important to have the possible route assessed immediately.

If the debtor did not appear at the hearing of the bankruptcy application, opposition can be lodged with the same court. The court then reviews the case again. The deadline for opposition is usually 14 days from the date of the judgment.

If the debtor was present and the bankruptcy was declared despite a defence, an appeal can be lodged with the court of appeal. An even shorter deadline applies: usually 8 days from the judgment. An appeal may also be possible within 8 days after an opposition has been rejected.

A lawyer is required for both opposition and appeal against a bankruptcy order. A creditor may also lodge an appeal, for example if the court has rejected a bankruptcy petition.

Which arguments may play a role?

Whether opposition or appeal has a chance of success depends on the circumstances. Sometimes it can be argued that the applicant does not have a due and payable claim. In other cases, the business has not stopped paying, or the situation can quickly be resolved by reaching an arrangement with creditors. In opposition proceedings, payment of the applicant’s claim may sometimes play an important role.

Acting quickly after a bankruptcy order

LVH Advocaten helps entrepreneurs and creditors with opposition and appeal in bankruptcy matters. We assess the judgment, quickly map out the possibilities and risks and determine which steps are necessary. Clients benefit from our experience with bankruptcy proceedings and our knowledge gained in trustee practice.

Do you want to challenge a bankruptcy order, or has your bankruptcy petition been rejected? Contact us immediately. Because of the short deadlines, quick action is essential.

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