Restructuring and insolvency—Norway—Q&A guide

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

  • Restructuring and insolvency—Norway—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—Norway—Q&A guide

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

Authors: Kvale Advokatfirma—Ingrid E S Tronshaug; Stine D Snertingdalen

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

The main legislation applicable to insolvencies and reorganisations in Norway are the Bankruptcy Act of 1984, the Satisfaction of Claims Act of 1984 and the recently enacted Reconstruction Act of 2020. The Bankruptcy Act regulates both judicial debt negotiation proceedings and winding-up proceedings, and mainly provides procedural rules, including criteria for the opening, handling and finalisation of the respective proceedings. The Satisfaction of Claims Act includes, inter alia, rules on the bankruptcy estate's automatic seizure of the debtor's assets, avoidance (clawback or annulment of transactions), how to treat a bankrupt debtor's contracts, as well as rules on creditors' claims and the order of priority for such claims. The Reconstruction Act was implemented on 11 May 2020 in order to help companies out of distress caused by the covid-19 pandemic, and provides a new set of temporary rules that replaces the rules on judicial debt negotiation proceedings in the Bankruptcy Act until 1 January 2022. The act is based on a proposal for new, permanent restructuring legislation by Judge Leif Villars-Dahl, which was subject

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