Restructuring and insolvency in Belgium
refers to two different legal procedures which are applicable in the situation in which a company must be closed down
on various legal grounds. Insolvency
is a procedure through which a company is closed down
due to bankruptcy issues
. The legislation in Belgium
provides different rules of law for such procedures and in the case of insolvency
, the Belgian lawyers
use the provisions available under the Bankruptcy Act
refers to the processes through which a business is reorganised
and it is regulated by the Act on the Continuity of Enterprises
. Our Belgian law firm
can provide in-depth information on each procedure.
Restructuring procedures in Belgium
The restructuring of a company is necessary when the business meets an important financial issue. If the company is maintained in its current conditions, the business will most likely incur other debts and thus, this could lead to its liquidation. In order to avoid this outcome, the management must find suitable solutions to improve the company’s financial situation.
Restructuring a company can be performed through an amicable settlement, which is applicable only in the case in which the company’s creditors will allow the procedure, without requesting to obtain their debt.
The other option is to appoint a mediator
representing the Commercial Court in Belgium
, who will negotiate on how to perform the reorganisation of the business
in such a manner that the company will become profitable
again. Our lawyers in Belgium
can offer legal assistance to the investors who are taking into consideration the reorganisation
of their business.
Insolvency procedures in Belgium
can be carried out under two different options. The first option refers to bankruptcy proceedings
, which must be opened upon the request of the company’s management
. In order to close a company
under this procedure, the Commercial Court
will have to verify the situation on the business and attest its financial situation.
The second option related to insolvency
is to liquidate the company
, as prescribed by the Companies Code
. The procedure can be opened on a voluntary basis
Businessmen who need further information on the insolvency and restructuring procedures in Belgium
are invited to address to our Belgian lawyers
for legal representation.