Financial distress can have a significant impact on the continuity of a business. Whether you are facing liquidity problems, considering a corporate restructuring, or seeking to recover outstanding debts as a creditor, timely legal advice is essential.
Our insolvency and restructuring team advises and represents businesses, directors, shareholders, creditors and investors in all aspects of Dutch insolvency law. We provide strategic advice, assess legal risks and develop practical solutions designed to protect your commercial interests. Where necessary, we represent clients in litigation and insolvency proceedings before the Dutch courts.
Under Dutch law, a company experiencing temporary financial difficulties may apply for a statutory suspension of payments (surseance van betaling). This court-supervised procedure is intended to provide breathing space by temporarily protecting the company against enforcement actions by unsecured creditors while a restructuring is explored.
An application must be submitted to the court by a lawyer. If granted, the court will usually order a provisional suspension of payments and appoint one or more court-appointed administrators (bewindvoerders). Working alongside the company’s management, the administrators assess the viability of the business and explore the possibility of achieving a restructuring, refinancing or composition with creditors.
During the suspension period, unsecured creditors are generally prevented from enforcing their claims, allowing the company to focus on restoring its financial position. If a viable restructuring proves impossible, or if no agreement can be reached with creditors, the court may convert the suspension of payments into bankruptcy proceedings.
Bankruptcy proceedings under Dutch law may be initiated either by the debtor or by one or more creditors.
Companies that are no longer able to meet their financial obligations may decide to file for bankruptcy voluntarily. Although legal representation is not mandatory in every case, professional legal advice is highly advisable given the legal and commercial consequences of bankruptcy.
Once the District Court declares a company bankrupt, it appoints a bankruptcy trustee (curator). The trustee administers the bankruptcy estate, investigates the company’s financial affairs and realises the company’s assets for distribution among creditors in accordance with the statutory order of priority.
Creditors may also petition the court to declare a debtor bankrupt. Under Dutch insolvency law, the applicant must demonstrate, among other things, that the debtor has ceased to pay its debts and that there is more than one creditor with an outstanding claim. We advise creditors on the legal requirements, prepare bankruptcy petitions and represent clients throughout the proceedings.
Directors of insolvent companies may, in certain circumstances, incur personal liability. Under Dutch law, a bankruptcy trustee may seek to hold directors personally liable where there has been manifestly improper management and such conduct has been a significant cause of the company’s bankruptcy.
Claims relating to directors’ liability are often legally and factually complex and may expose directors to substantial personal financial risk. We advise and represent directors in investigations, negotiations and litigation, ensuring that their legal position is carefully assessed and vigorously defended where appropriate.
Businesses facing financial or operational challenges often benefit from restructuring before insolvency becomes unavoidable. A timely restructuring can preserve enterprise value, safeguard business continuity and improve the prospects of long-term recovery.
We advise companies throughout every stage of the restructuring process. Our work includes advising on corporate governance, financing arrangements, creditor negotiations, employment law issues, employee participation rights and other legal matters relevant to a successful reorganisation. By identifying risks at an early stage, we help businesses implement effective and legally sound restructuring solutions.
Every insolvency or restructuring matter presents its own legal and commercial challenges. Our team provides practical, solution-oriented advice to companies, directors, creditors and investors across a broad range of insolvency-related matters.
Our services include:
By combining in-depth knowledge of Dutch insolvency law with a pragmatic commercial approach, we help our clients navigate complex situations and achieve the best possible outcome.
