Restructuring and insolvency—Netherlands—Q&A guide

The following Restructuring & Insolvency practice note provides comprehensive and up to date legal information covering:

  • Restructuring and insolvency—Netherlands—Q&A guide
  • 1. What main legislation is applicable to insolvencies and reorganisations?
  • 2. What entities are excluded from customary insolvency or reorganisation proceedings and what legislation applies to them? What assets are excluded or exempt from claims of creditors?
  • 3. What procedures are followed in the insolvency of a government-owned enterprise? What remedies do creditors of insolvent public enterprises have?
  • 4. Has your country enacted legislation to deal with the financial difficulties of institutions that are considered ‘too big to fail’?
  • 5. What courts are involved? What are the rights of appeal from court orders? Does an appellant have an automatic right of appeal or must it obtain permission? Is there a requirement to post security to proceed with an appeal?
  • 6. What are the requirements for a debtor commencing a voluntary liquidation case and what are the effects?
  • 7. What are the requirements for a debtor commencing a voluntary reorganisation and what are the effects?
  • 8. How are creditors classified for purposes of a reorganisation plan and how is the plan approved? Can a reorganisation plan release non-debtor parties from liability and, if so, in what circumstances?
  • 9. What are the requirements for creditors placing a debtor into involuntary liquidation and what are the effects? Once the proceeding is opened, are there material differences to proceedings opened voluntarily?
  • More...

Restructuring and insolvency—Netherlands—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to restructuring and insolvency in Netherlands published as part of the Lexology Getting the Deal Through series by Law Business Research (published: June 2021).

Authors: Freshfields Bruckhaus Deringer—Alejandra Bouts; Charlotte Ausema; Rodolfo van Vlooten; Huub Boekhorst; Michael Broeders

1. What main legislation is applicable to insolvencies and reorganisations?

The Dutch Bankruptcy Act currently provides for three different types of insolvency proceedings:

  1. bankruptcy, applying to companies, other legal entities and natural persons;

  2. preliminary and definitive suspension of payments, which can be granted to most companies and legal entities or to natural persons carrying out a profession or business; and

  3. debt reorganisation of natural persons.

A court may proclaim a debtor bankrupt when there is prima facie evidence that shows that the debtor has ceased to make payments. If a creditor petitions for the debtor's bankruptcy, the creditor must moreover show prima facie evidence of his or her claim against the debtor. Pursuant to Dutch bankruptcy law, a debtor has ceased to make payments when the following criteria are satisfied: there must be more than one creditor and at least one of the creditors' claims is due and payable; and the debtor has to have stopped making payments.

At EU level, there are several legislative frameworks in the insolvency context. The most important one is the Recast Regulation on Insolvency

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