Is your company in trouble because of Covid-19? These are your options
The government’s measures to help companies in difficulty are far-reaching. However, this will not be sufficient for everyone. Although everyone is trying to make the best of it, in these financially difficult times many will be not be able to keep their heads above the water.
What are your options?
As a result of Covid-19, many companies will run into financial difficulties. Accounts payable positions are rising. Debts can no longer be collected. And while you may not have to pay taxes in the near future, this will (undoubtedly) have to be made up after the summer. In short, liquidity is necessary, but difficult to obtain.
In such circumstances, which options exist? Among others, you can think of:
- Application for suspension of payments
- Offering a creditors’ agreement
- Remediation of (part of) the company
- Selling (part of) the company
- Guidance in and towards bankruptcy
Advice: don’t wait too long
The best solution will of course have to be determined for each company individually. However, we advise you not to wait too long. The sooner measures are taken, the faster the path to a financially healthy company can be followed.
We are ready for you
If you have any questions about this, you can always contact GMW lawyers. Our specialists are ready to help you.
Mechteld started her career as a lawyer in Rotterdam, where besides practicing maritime law, she became acquainted with insolvency law. In the “wet” shipping practice, she quickly learned to comprehend problems, seek out legal but also practical solutions and negotiate. This also proved very useful with insolvency law. In the meantime Mechteld specialised in insolvency law and regularly acts as a court appointed trustee. Mechteld’s other specialisations are corporate and contract law, particularly litigation and advising on corporate law matters as well as on contract law issues such as (management) liability.
