Restructuring is an important instrument for any company facing financial issues. The “financial issues” attribute may cover a profitable company that is weighed down by substantial financing expenses, but also a company that foresees that it will not be able to meet an important repayment obligation in six months’ time, or even a company that is so short of liquid assets that it will not be able to pay the wages at the end of the month.
The lawyers and civil-law notaries in our Corporate/M&A practice group have extensive experience in the field of restructuring companies (including cross-border restructuring), are aware of the fact that these are complex processes, and provide tailor-made advice at all times. We would be happy to assist you over the entire course of the process.
Matters that should be taken into account include:
- which creditors may be paid, and which may not?
- what is the risk for me as a director or supervisory director?
- what can I do as a shareholder to protect my own position?
- can the lender withdraw the loan, and what should I do if the loan is withdrawn?
- can my company restart (either wholly or in part) without the involvement of insolvency proceedings?
- what preparations are required for a proper restart of my company?
- what rights do my employees have?
The specialists in our Employment Law, Banking & Finance, Real Estate, Litigation and M&A practice groups are at your service and work closely as a team to answer these types of questions and to achieve the best possible result with you. We have ample experience in advising companies, directors, supervisory directors, shareholders, works councils, employees and creditors about their position. In the event of insolvency, the position in relation to the trustee in bankruptcy is a key subject in our advice as well. We are experienced in negotiating with, and litigating against, trustees in bankruptcy, lenders and other stakeholders. We regularly give advice on restarting companies and asset transactions.
Example: reaching a private settlement without insolvency proceedings
We assisted a client in reaching a private settlement without insolvency proceedings with the majority of its creditors, which included the bank, the main creditors and the lessor. To achieve this, the company was split in two. The new part incorporated the company’s future activities as well as all the employees. The old part retained some contracts that generated revenue. The bank’s funding was split as well, and a construction with new security was fleshed out and implemented.
- We advised a company on a restart by means of an acquisition of the bank financing (at a discount).
- For another pan-European company, we advised on a proposed acquisition prior to the insolvency of a Dutch company.