Companies in financial distress
Companies in financial distress
If a company is in financial distress it is difficult for all parties involved. The entrepreneur has to decide (over and over again) whether or not to continue the business and which creditors may or may not be paid. A restructuring or relaunch may be considered. Perhaps a moratorium can lead to a solution or a private settlement can be offered with the help of the WHOA. Or you want to continue but you are faced with a insolvency petition by a creditor. Can you defend yourself against such a petition?
On the other side creditors are looking for ways to minimize their losses. Can they suspend deliveries? Are they allowed to reclaim delivered items?
There may also be employees who are facing wage arrears. What is their position?
Experienced insolvency lawyers
The court regularly appoints lawyers from our firm as trustees in corporate insolvencies and as administrators in moratoriums. The experience that our lawyers gain in this process is used in advising and guiding our clients. This may be the company that is in dire financial straits, but it may just as well be one of the other parties involved, such as a supplier, a finance company or an employee. A different approach may be necessary for each party involved. After all, the interests of a creditor are essentially different from the interests of, say, an employee or a director. In all cases, this is tailor-made work. A private limited company with dozens of employees, sometimes with several branches, requires a different approach than a general partnership with natural persons as partners.
If you have any questions after reading an article or if you have any other questions in the area of insolvency law, please do not hesitate to contact us. We will be happy to assist you.
More about companies in financial distress
Click further if you would like to learn more about how we can advise you on the following areas/topics:
SPECIALIZED LAWYERS
These are our lawyers who are specialized in this area.
Furkan Alkilic
Peter de Graaf
Justin de Vries
More about companies in financial distress
Action on taxation in box 3
As we all know, there has been a lot of recent movement on box 3 taxation. Box 3 primarily taxes savings, investments and real estate. The assets in this box were previously taxed on the basis of a flat rate of return: the tax authorities set an assumed percentage, regardless of the actual return. This meant that many taxpayers paid taxes on a return they had not actually received. You may also have overpaid taxes in the past. If so, chances are you may be eligible for legal redress!
Directors’ liability after turboliquidation
In a recent court case concerning turboliquidation of a catering business, the court ruled that the directors were not personally liable. The case involved the discontinuation of the business without assets, with creditors being paid pro rata. The landlord claimed unlawfulness, but the court held that the turboliquidation had been carried out correctly with no obligation of bankruptcy.
Director’s liability for tax debts
Directors of troubled companies are usually aware that acts performed in the face of bankruptcy (if it comes to that) will be examined by a receiver. Unobligatory legal acts that have harmed creditors may be reversed by the trustee.
