Pre-packaged insolvency introduced in the Netherlands
Pre-packs are used in the Netherlands now and new steps are being taken to formalise this by introducing provisions into the Bankruptcy Act.
The concept of pre-packaged insolvency (or ‘pre-pack’) has been developed in the Dutch insolvency practice for quite some time. It is modelled after the ‘pre-packaged sale in administration’ (pre-pack) concept available in UK insolvency law. In practice, courts were petitioned to introduce a similar concept in Dutch law in order to improve the restructuring options offered by insolvency proceedings through a relaunch or debt rescheduling.
Entrepreneurs strongly resist the possibility of starting insolvency proceedings. The (negative) publicity and uncertainty for the parties involved (such as suppliers and employees) will, by definition, result in a loss in value and complicate the sale of the company. Entrepreneurs are furthermore often deterred by the complete loss of control that accompanies an insolvency, not knowing in advance how an administrator will handle the situation and the acquisition candidates that come forward…
If you are registered and logged in to the site, click on the link below to read the rest of the Taylor Wessing briefing. If not, please register or sign in with your details below.
News from Taylor Wessing
News from The Lawyer
Briefings from Taylor Wessing
The Preparatory Committee for the Unified Patent Court (UPC) has now published the 16th draft of the Rules of Procedure intended for the UPC.
According to Taylor Wessing’s Amy Patterson, the key question that remains is whether the change in COMI is one of substance or mere illusion.
Analysis from The Lawyer
The city-state is working hard to become a global wealth management hub, and law firms are gearing up for a prosperous new world
Financial disputes are starting to dominate the English courts as the long-awaited fallout from the downturn finally comes to town