The following Restructuring & Insolvency practice note Produced in partnership with Gorrissen Federspiel provides comprehensive and up to date legal information covering:
Bankruptcies and restructurings (reorganisations) are governed by the Danish Bankruptcy Act (Konkursloven), which provides for the following regimes:
rescheduling of debt (gældssanering)
The restructuring and bankruptcy regime is available to insolvent individuals as well as legal entities (companies), whereas the rescheduling of debt regime is only available to individuals.
Pursuant to the Danish Bankruptcy Act, a debtor is insolvent when it is unable to meet its liabilities as and when they fall due, unless such inability must be deemed to be only temporary. The final decision is based on an assessment of the debtor’s liquidity (a cash flow test). The fact that the debtor’s liabilities exceed its assets is not generally of importance.
Apart from the insolvency regimes available under the Danish Bankruptcy Act, an insolvent debtor may advance a proposal for a voluntary composition. Such composition constitutes an agreement between the debtor and the creditors comprised by the proposal and is governed by general rules of contract law.
Moreover, the Danish Companies Act (Selskabsloven) provides for voluntary winding-up (likvidation) of companies (not individuals). However, these rules are applicable only if the company in question is solvent. If the company is insolvent, winding-up of the company must be carried out by way of
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
The Financial Conduct Authority Handbook (FCA Handbook) includes sourcebooks to regulate the conduct of business by a regulated firm relevant to insurers: the Conduct of Business Sourcebook (COBS) and the Insurance Conduct of Business Sourcebook (ICOBS). This Practice Note considers how these
An ad hoc arbitration is any arbitration in which the parties have not selected an institution to administer the arbitration. This offers parties flexibility as to the conduct of the arbitration, but less external support for the process. It can be quicker than institutional arbitration but not if
This Practice Note discusses the common law doctrine of privity of contract; the equitable and statutory exceptions to it; how the doctrine affects enforcing a contract against a third party and what happens when, notwithstanding the lack of privity, a contract has an indirect effect on a third
This Precedent letter covers disclosure obligations under CPR 31. It does not apply to proceedings subject to the disclosure pilot scheme under CPR PD 51U. For guidance on the disclosure pilot scheme, see Practice Note: Business and Property Courts—the disclosure pilot scheme. For a client letter on
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.