There are many reasons why companies get into financial difficulties: an economic crisis, amended legislation, too rapid growth, competition, the entrepreneur’s personal problems, etc. This results in a special kind of dynamics for many of the parties involved. If a contractor is in financial difficulties and you are the client, then you want to know what your legal position is and if possible improve it. And if one of your competitors is in trouble, you may perhaps see an opportunity for a takeover. As a director or supervisor of a company in difficulty, you may well wonder whether there is a risk of your being held personally liable. If the clouds over a company are getting darker, it will want to try to survive.
It’s issues of this kind that our Insolvency Law department deals with. Our specialists don’t just have legal expertise but are also experts in the commercial aspects. As a result, they are frequently appointed by the court as administrators or insolvency practitioner. That expertise means that they have a great deal of knowhow and experience on issues relating to insolvency or an impending insolvency.
We can advise you about what is and isn’t possible regarding (financial) restructuring, reorganisation, or restart scenarios for your company. We often do that as part of a multidisciplinary team that also includes our Employment Law department and our Tax Law department (the only one in Limburg), but also in cooperation with accountants and other business advisers. In addition, we advise the management and supervisory boards on good governance and liability issues in the event of an insolvency (or impending insolvency).
In the event of an acquisition in an insolvency situation, speed is of the essence. Such a takeover often offers numerous opportunities, but it’s also a legal minefield. Our insolvency lawyers are accustomed to acting quickly, pragmatically, and under great pressure. Our wide network gives you quick access to almost every insolvency practitioner in the Netherlands.
Unfortunately, insolvencies regularly result in proceedings involving the insolvency practitioner, the bank, the tax authorities, or other creditors. We have a great deal of experience with proceedings of this kind, including regarding liability (also of directors), alleged fraudulent action in respect of creditors [actio pauliana], wrongful acts, and other insolvency-related proceedings. We conduct such proceedings on behalf of companies, institutions, public authorities, executive directors and supervisory directors, banks, creditors, and insolvency practitioners who prefer, for many reasons, to call in a lawyer from outside their own firm. We have excellent relations with the major directors’ liability insurers in the Netherlands and they often permit us to act on behalf of their policyholders.
Insolvency law covers the following:
- reorganisation and restructuring of companies in order to prevent insolvency;
- composition with creditors (in and out of court);
- advice for managing directors, supervisory directors, and shareholders regarding strategic issues relating to impending insolvency;
- proceedings relating to directors’ liability and actio pauliana;
- assistance with takeovers in an insolvency situation (or impending insolvency);
- advice and litigation regarding interest rate swaps and other interest rate derivatives.
Please contact our Insolvency law department with any questions about these matters.