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.
Justin de Vries
Furkan Alkilic
Peter de Graaf
More about companies in financial distress
Disproving the legal presumption concerning director liability in bankruptcy
A director is liable to make good the deficit in the bankruptcy if the board has manifestly mismanaged the company and it is likely that this was a major cause of the bankruptcy.
Fiscal support measures during Corona crisis
On the 17th March 2020, the Cabinet announced a large number of measures. These measures are aimed at supporting companies and freelancers. The measures include measures to maintain employment on the one hand and measures to ensure that companies do not go bankrupt and that self-employed people can maintain an income on the other hand.
Bill on Homologation Private Placement Significant change in insolvency law is imminent
A very important change in insolvency law is imminent. This change concerns the possibility of a debtor's offering a composition to creditors. In the current situation, there is only an arrangement for the compulsory imposition by the court of an arrangement with creditors in suspension of payments or bankruptcy. In the Bill on the Homologation of Private Agreements (WHOA), the possibility has been included that a compulsory composition without a moratorium or bankruptcy can be concluded. This will drastically change the possibilities for resolving problematic debts. This change is important for debtors, but also for their providers of capital, such as creditors and shareholders.
