Tags: Insolvency and Restructuring
New insolvency landscape on the horizon: more options for companies to reorganise and restructure
Belgium had accumulated a significant legislative backlog within insolvency law. The European Directive 2019/1023 on restructuring had to be transposed into national law by the member states by 17 July 2022 at the latest. The Belgian government did not submit a draft bill to this effect until 20 March 2023. This draft has since been voted into law and will enter into force on 1 September 2023.
Heiploeg’s impact on Belgian insolvency law
The European Court of Justice’s (“ECJ”) Plessers judgment seemed to cause a serious threat for the applicability of the Belgian reorganisation procedure by transfer under judicial supervision, and the right of the interested buyer of the debtor’s activities to choose which particular employees it would take over. But, in the end, it has turned out to be “much ado about nothing”.
No automatic liability for directors who do not ring the alarm bell
On 16 September 2021, the Antwerp Court of Appeal ruled on the liability of the directors of a company that did not respect the so-called ‘alarm bell procedure’.
Limits to privileged claims
A company (debtor) involved in reorganisation proceedings is in principle not protected against new claims that originate after the reorganisation proceedings have been opened.
Clawback: chasing assets
This article reflects on some of the options offered under Belgian law by the actio pauliana, commonly referred to in English as the ‘clawback’ rules.
Effect of EU preventive restructuring directive on Belgian insolvency framework
On 31 January 2009 the Belgian Business Continuity Act (BCA) was passed into law. The BCA’sobjective is to protect companies in financial difficulty from their creditors so that a reorganisation process can take place and bankruptcy can be avoided.
Licence to contract – licence agreements and insolvency law
In an insolvency situation, the fate of ongoing contracts is something to be discussed. Such contracts are often closely linked to the essence of a company’s business.
Stricter scrutiny of inactive companies
The legislature recently took steps to improve the follow-up monitoring of companies in financial difficulty and strengthen the fight against inactive companies.