One of the options under Belgian law for a company in financial difficulty is to receive protectionfrom its creditors and proceed to a partial sale of its assets as a going concern, all with a view tocontinuing the distressed activities (for further details please see "Reorganisation proceedings:access and possibilities").
Although changes were made to the Belgian insolvency framework in 2017 (for further details pleasesee "Changes to insolvency regime proposed"), the articles that govern the transfer of assets andactivities were not materially altered.
When negotiating an agreement to transfer part of a distressed company's assets and activities, thecompany's personnel are an important factor.To facilitate this process, the Belgian legislature introduced provisions making it possible to takeover only a portion of the personnel and/or to negotiate new labour conditions. This deal can beauthorised later by the labour courts.
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