14 May 2025
Directors’ Liability in a Start-up
There are more and more start-ups emerging, some of which unfortunately fail and go bankrupt. But how does directors’ liability apply to start-ups?
Read more
Sometimes, businesses still encounter financial problems due to old debts.
But these businesses don’t always have to go bankrupt.
In these cases, a creditor’s agreement can offer a solution. A successful restructuring of the debts will enable the business to continue running and become profitable again. Although the creditors are only paid part of their claim, this method enables them to retain the client. Furthermore, in the case of a bankruptcy, creditors often end up with even less, since the liquidator must be paid first. Therefore these agreements can be a good solution for all parties involved.
In a creditor’s agreement, the debtor offers to pay all his creditors a certain percentage of the claim.
In principle a creditor’s agreement is no more than an agreement between the debtor and the creditors. If one or more creditors does not wish to cooperate it is not possible to create an agreement. The bill for the Continuity of Enterprises Act II is a bill which is aimed at providing a legal basis for these sorts of peremptory agreements.
Creditors will obviously never be happy when offered an agreement. It is often necessary to convince them to get them on board. In addition, it is important that the offer is better than bankruptcy.
Seeking advice is a good idea, both for the debtor who wants to offer an agreement and for a creditor who is asked to cooperate.
GMW lawyers will be happy to help you with all your insolvency and restructuring issues. If you have any questions, please contact us directly using the enquiry form below or +31 (0)70 3615048. Our insolvency lawyers will be glad to support and advise you.
GMW lawyers will be happy to help you with all your insolvency and restructuring issues. Do you have a question? Feel free to contact us.
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14 May 2025
Directors’ Liability in a Start-up
There are more and more start-ups emerging, some of which unfortunately fail and go bankrupt. But how does directors’ liability apply to start-ups?
Read more
9 April 2025
Understanding a contract
Every entrepreneur benefits from clear and enforceable agreements. But how should you assess a contract in general? Is there a step-by-step approach you can follow? In this blog, we share some tips to help you quickly understand and draft contracts.
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7 April 2025
Security rights in bankruptcy: the right of reclamation
It is common for a supplier to deliver goods to a customer without requiring immediate payment. In doing so, the supplier runs the risk that the customer will not pay or may even be declared bankrupt.
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31 March 2025
Security Rights in Bankruptcy: Retention of Title
It is common for a supplier to deliver goods to a customer without requiring immediate payment. In doing so, the supplier runs the risk that the customer will not pay or may even be declared bankrupt.
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24 March 2025
How to check if a company is bankrupt
When doing business with a (new) party, it is always wise to verify whether the company is solvent or possibly bankrupt. But how can you determine if a company has been declared bankrupt or if a bankruptcy petition has been filed?
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17 February 2025
WHOA also available for sole proprietorships and general partnerships
Since its introduction, the WHOA has proven to be a successful method for restructuring businesses in financial distress, preventing unnecessary bankruptcies
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29 January 2025
Strengthening Works Council Rights in Bankruptcy Cases
For the second time in five years, a proposed bill was open for public consultation, introducing new rules that automatically transfer employees to the acquiring company during a restart after bankruptcy.
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14 October 2024
Protection of staff in relaunch from bankruptcy
A bankruptcy trustee spends much of his time on a possible restart of part of the company. Naturally, his estate has an interest in this. But so does the relaunching party itself.
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23 September 2024
WHOA functions to prevent bankruptcy of viable companies, but is less effective in reaching SMEs
Three years after the entry into force of the Court Approval of a Private Composition (Prevention of Insolvency) Act (Wet homologatie onderhands akkoord, WHOA), it has been evaluated by a joint research team from the Universities of Groningen and Leiden on the instructions of the House of Representatives.
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