When a company faces imminent bankruptcy, or when you as a creditor are faced with the (imminent) bankruptcy of a business partner, prompt and expert legal assistance is essential.
When a company faces imminent bankruptcy, or when you as a creditor are faced with the (imminent) bankruptcy of a business partner, prompt and expert legal assistance is essential.
Acute payment difficulties require clarity about which obligations are due, what liquidity will become available and whether a realistic prospect of recovery exists. We assist businesses, directors and creditors with that assessment. Continuing without a substantiated plan may increase losses; stopping too early may destroy value.
When a business faces financial difficulties, it is important to explore options to avoid bankruptcy early. Prompt analysis of the financial position, business processes and existing obligations allows restructuring or debt reduction options to be examined. Negotiations with creditors, refinancing or legal mechanisms such as the Dutch Act on Court Confirmation of Extrajudicial Restructuring Plans (WHOA) and suspension of payments may prevent bankruptcy. Subject to statutory conditions, a court-ordered cooling-off period may temporarily provide room to develop a solution. Preparing a WHOA plan does not automatically suspend enforcement action.
A bankruptcy order requires summary examination to establish facts and circumstances showing that the debtor has ceased paying its debts. For a creditor’s petition, the creditor’s claim must also be sufficiently established. The requirement for multiple creditors does not mean that every situation involving two debts automatically leads to bankruptcy; the debtor’s payment position must be assessed separately.
The Dutch judiciary explains the procedure for a creditor’s petition. A disputed invoice is not necessarily a sufficient defence. Gather documents about the claim, other debts, payments and financing immediately. Negotiations do not automatically halt the proceedings; an adjournment or withdrawal must be arranged procedurally.
For a debtor’s own petition, authority to make the decision and required internal approvals must also be checked. Very short time limits apply to potential remedies after a bankruptcy order. Obtain advice immediately rather than waiting for further correspondence.
Check the claim, security rights, retention of title and potential set-off. A bankruptcy petition does not guarantee payment and must not be used without the required basis or abusively. A successful petition may instead mean that individual recovery options give way to collective administration.
After a bankruptcy order, the claim must be lodged correctly with the bankruptcy trustee. Certain rights have their own conditions and deadlines. See our page on creditors in bankruptcy. Potentially prejudicial transactions may warrant investigation, but individual creditors cannot all exercise the same powers as the trustee.
A restart may preserve value and operations, but requires investigation into what the trustee can actually transfer. Contracts, permits, personal data and intellectual property do not all automatically accompany the assets. Employment consequences must also be assessed; bankruptcy does not justify concluding in every structure that employee protection is inapplicable.
We assess the price, warranties, usage rights, transitional arrangements and feasibility. Acquisitions out of bankruptcy often come with limited warranties, making prior investigation especially important.
Cross-border bankruptcies often involve additional legal and practical challenges. The application of the European Insolvency Regulation and other international rules determines jurisdiction and how assets abroad can be secured. Strategic action in cooperation with foreign lawyers and identifying recovery opportunities are particularly important.
Not automatically. The arrangement must address the petition and the overall payment position. Other creditors and any continued petition may also be relevant.
Do not do so without having the rights and circumstances assessed. Retention of title, identification, third-party rights and any cooling-off period may matter. Coordinate the approach with the trustee.
Contact us with the petition or a current overview of debts and liquidity. We assess the available routes, relevant deadlines and risks for those involved.
