Restructuring and insolvency
A restructuring or reorganisation is (usually) used as a tool to achieve a more favourable cost structure. Attracting new financing, effecting redundancies and making arrangements with the tax authorities and creditors are just three issues that will come up within that process. In addition, a restructuring may also be the result of a will to ‘restriction of (liability) risks’.
In a case of (impending) insolvency, the business in question is (or shortly will be) unable to fulfil its obligations. Entrepreneurs may be faced with this in various ways: for example, if holiday allowances can no longer be paid or as a result of a defaulting customer.
Specialists in restructurings and insolvency
The attorneys at BvdV are experts in restructurings and insolvency. We assist our clients in cases of (re-)financing, (personnel) reorganisations and setting up or changing legal structures. In addition, partly based on our experience as trustees, we are able to offer tailored advice to clients in cases of (imminent) insolvency. Our team is ready to help: whether it’s to negotiate with a bank, speak to the tax authority or enter into a dialogue with a trustee.
Restructuring practice examples
If you are the sole proprietor of a business and are seeing an increase in risk, then it might be prudent to transfer the business into a separate limited liability company;
If you feel you might have to restructure your business but aren’t sure, then why not take an inventory of the possibilities of (re-)financing the business, redundancies, making arrangements with the tax authority, (re)negotiating the lease;
If you are unsure it is wise to secure your assets, then why not examine the possibility of transferring certain assets, e.g. the commercial property or intellectual property rights, to a separate limited liability company;
If you are thinking of starting up operations in a different field, it is often prudent to do so using another/new limited company.
Insolvency practice examples
If you are worried that you may not be able to fulfil your obligations (in the near future), then perhaps you may be able to reach an agreement with your creditors or maybe a suspension of payment may offer a solution;
Are you on the brink of bankruptcy? Then why not take advice on the consequences of insolvency for you as the managing director and/or financier of the company;
Have you supplied goods to a company that is going bankrupt? Then the first step should be determining whether you can claim retention of title or right of recovery;
Would bankruptcy (of a competitor) provide opportunities to realise a relaunch? It is crucial that clear agreements be made with the trustee and that all contractual and personal consequences of a relaunch are clear from the outset.
Restructuring & insolvency at BvdV
BvdV has experience with any and all issues relating to restructurings and insolvency. If you have any questions or require the assistance of an experienced lawyer, then please get in touch with BvdV.