Restructuring & Insolvency
Sooner or later every business has to contend with challenges, such as a client’s unpaid invoices or supply chain disruptions due to a supplier’s financial difficulties. The resultant losses can often be minimised through the timely adoption of prudent measures.
Strategies for business recovery
Impending insolvency or any other financial difficulty need not mean the demise of a business. In some cases it may apply for a suspension of payments or restructure its debts under the Dutch WHOA Act (Wet Homologatie Onderhands Akkoord). This process allows for a mandatory composition to be offered to creditors, thereby facilitating debt restructuring.
In the case of insolvency an administrator is appointed to liquidate the assets. If the insolvent business no longer has any assets or income, so called ‘turbo liquidation’ may be an option as it offers a quick and cost-efficient solution.
Whether a relaunch, business restructuring or a creditor composition is involved, Dirkzwager can produce a strategic solution. Our insolvency lawyers, who also serve as administrators, offer our clients fresh perspectives and assistance at every stage of their financial distress.
Director’s liability
In certain circumstances, not only legal entities but also their directors may be held liable for their actions. An administrator, a legal entity or an external creditor may hold the board of directors liable for any loss which they suffer due to the latter’s actions. Moreover, an administrator or creditor may file an actio pauliana should a prejudicial legal act occur. Dirkzwager can identify these risks and help both directors and creditors safeguard their interests.
One-stop shop for security and execution
If a business seeks additional funding, this often involves tendering security, such as a pledge or mortgage. But what happens if the company becomes insolvent? Which creditor is entitled to what? What are the implications for the group of companies? What about suppliers who have supplied products subject to retention of title? And what if the Tax Administration office attaches any property found on the premises of the insolvent business?
Dirkzwager is a one-stop shop which can provide comprehensive advice and assistance in relation to the following:
- Establishing and realising security
- The provision of advice and mediation services which cover (re)financing
- Assistance in the case if a bank's cancellation credit facilities and/or special administration
- Bank guarantees
- Suretyship
- Restitution and subrogation
- Drafting security clauses in contracts
Get in touch
Our lawyers, civil-law notaries and tax specialists work closely together to provide customized advice and sustainable solutions, from a broad perspective.
- Dedicated specialists
- Pragmatic approach
- Personal and quick contact
