Companies in difficulty
As a business owner, you would probably prefer not to talk about financial problems. Yet it is essential to take timely action to prevent such problems from jeopardising the continuity of your business.
Whether you opt for a restructuring to get the business back on track, a (turbo) liquidation to bring its activities to an end, a WHOA restructuring process to offer a composition to your creditors, or bankruptcy proceedings in which the legal and financial aspects must be carefully managed, each scenario requires careful decision-making and a strategic approach.
Various rescue options for businesses in financial difficulty
Restructuring
If your business is experiencing financial difficulties, it is important to address them as quickly as possible. The first step is to identify what has caused the problems. Is turnover insufficient? Have costs spiralled out of control? Once the problem has been analysed, an improvement plan can be drawn up. This means reorganising or restructuring the business to improve operational efficiency, reduce costs and restore financial stability.
A restructuring may involve disposing of non-core activities, renegotiating debts with creditors, adjusting staffing levels or changing management structures.
Turbo liquidation
Do you want to dissolve your Dutch private limited company (BV) or public limited company (NV) quickly and efficiently, without the need for a lengthy and costly liquidation process? You may be able to use a turbo liquidation. This is possible where there are no remaining or anticipated assets. In that case, no winding-up process is required and the BV or NV can be dissolved immediately without formal liquidation proceedings.
Put simply, a turbo liquidation involves deregistering the company from the Trade Register of the Dutch Chamber of Commerce without a winding-up process taking place. Since 23 November 2023, the rules governing turbo liquidation have been tightened. It is important to handle this process properly and thoroughly.
Bankruptcy
If, as a business owner, you are no longer able to pay your creditors, you can file for your own bankruptcy. Your creditors can also petition for the bankruptcy of your business if their claims remain unpaid. Once bankruptcy proceedings begin, the debtor's assets fall within the bankruptcy estate and the court appoints a bankruptcy trustee and a supervisory judge. The bankruptcy trustee is responsible for administering and disposing of the assets in the estate. The principal objective is to distribute the proceeds of those assets among the creditors in accordance with the statutory order of priority.
WHOA
The WHOA (Wet Homologatie Onderhands Akkoord, the Act on Court Confirmation of Extrajudicial Restructuring Plans) entered into force on 1 January 2021. Under the WHOA, a business in serious financial difficulty can offer its creditors a restructuring plan - which can, in certain circumstances, be imposed on dissenting creditors - under which they agree to accept payment of part of their claims. This can help prevent bankruptcy.
Why instruct our insolvency lawyers?
If your business is in financial difficulty, this can be both challenging and stressful. Our specialist corporate and insolvency lawyers will guide and advise you at every stage of the process. Whether the matter involves restructuring, turbo liquidation, the WHOA or bankruptcy, we have the expertise to help you make well-informed decisions, for example by preparing restructuring plans, guiding you through a liquidation process or navigating bankruptcy proceedings. We understand the complexity and sensitivity of these situations and aim to protect your interests as effectively as possible.
We can also help you understand the legal implications of each step and ensure that you comply with all applicable legal obligations. At a time when every decision may be critical, our experience and expertise provide the support and reassurance you need to navigate this difficult period.
Four of our lawyers are regularly appointed by the District Court of The Hague in insolvency proceedings. They act as bankruptcy trustees, as administrators in suspension-of-payments proceedings, or, in WHOA proceedings, as observers or restructuring experts. This gives us extensive experience of a wide range of restructurings and means that we are also familiar with 'the other side of the table'.
Please feel free to contact us for more information or to arrange an appointment.
what our clients say about us
Closing the business was not an easy decision. Thanks in part to Harjo Bakker and Kelly Verheij, an agreement was reached that allowed us – and our creditors – to move on with our lives. They have a wealth of knowledge, but beyond that they understood us and always made time for us whenever we wanted to discuss matters or had questions.
Large-scale flower nursery
Thanks to Harjo and Kelly, we opted for bankruptcy in time. It was not an easy decision, but ultimately it was the best choice for both the company and the staff. Because of them, we knew exactly what to do in this difficult situation.
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Get in touch
Do you have any questions or would you like to make an appointment? Get in touch with us, without any obligations.
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