Restructuring: Tailored Legal Solutions for Complex Challenges
In a dynamic economic climate, businesses may be confronted with the need to restructure.
Restructuring: Tailored Legal Solutions for Complex Challenges
In a dynamic economic climate, businesses may be confronted with the need to restructure.
In a dynamic economic climate, businesses may be faced with the need to restructure. This may stem from financial difficulties, such as an excessive debt burden, but also from changing market conditions or internal inefficiencies. Restructuring requires a careful approach that balances all interests inside and outside the company. At Guldemond Advocaten, we are ready to guide you through this complex process.
Restructuring can take many forms and involve various instruments, depending on your company’s specific situation. Whether it concerns a substantial debt reorganisation, an operational restructuring, or safeguarding assets, we offer tailored solutions. Below, we outline some common options.
1. The Court Approval of Private Restructuring Plans Act (WHOA)
The WHOA provides companies with a powerful legal instrument to restructure debt outside of formal bankruptcy proceedings. It enables creditors to be bound by a restructuring plan even if not all creditors consent. This can be used, for example, to prevent individual creditors from blocking the restructuring. You can read more about this specific procedure and its advantages on our dedicated WHOA page.
2. Pre-pack: a Controlled Restart
A pre-pack is a process in which a restart is prepared before a company is formally declared bankrupt. In consultation with a proposed bankruptcy trustee and supervising judge, the company’s assets and operations are safeguarded so they can be transferred immediately after bankruptcy to a new entity. This process provides stability and structure, but also requires careful communication with creditors and other stakeholders to avoid legal complications. We have extensive experience advising on pre-packs, both for business owners and for other involved parties.
3. Debt Reorganisation and Payment Plans
For businesses struggling with an excessive debt burden, debt restructuring can offer a solution. This may include renegotiating financing terms, arranging payment plans with creditors, and, in some cases, raising new capital. Our lawyers assist you in negotiations with banks, tax authorities, and other creditors to reach workable agreements.
4. Workforce Restructuring and Social Plans
In a restructuring, it may be necessary to adapt the organization. This can have significant consequences for the workforce. We provide support in drafting social plans, communicating with the works council, and negotiating with trade unions. With a clear legal strategy, we ensure that the process is conducted carefully and in accordance with the applicable legal framework.
A successful restructuring depends not only on legal and financial measures, but also on effective stakeholder management. We have experience representing business owners, restructuring experts, and creditors. Our approach focuses on aligning all parties to enable sustainable solutions. Strategic communication, building support, and negotiating favourable terms are crucial elements of this process.
Sometimes it is necessary to gain time and temporarily keep creditors at bay. This can be achieved by using legal instruments such as requesting a cooling-off period or temporarily freezing security rights. This creates breathing space to develop a restructuring plan and discharge debts, or to facilitate a controlled restart if the company is no longer viable.
To quickly gain insight into your situation, we offer a legal quick scan. Through this due diligence analysis, we assess risks related to director liability, insolvency, and potential strategies to prevent bankruptcy, providing you with clear advice on the best approach for your specific circumstances..
Restructuring involves many aspects: legal challenges, strategic considerations, and human factors. Our lawyers bring years of experience in restructurings, debt solutions, and reorganisations. We work with you to develop a restructuring plan that takes into account all facets of your business — from debts to personnel matters and commercial agreements. Whether you choose a WHOA procedure, a pre-pack, or a debt restructuring, we ensure a practical and future-proof approach.
