Restructuring and Insolvency Lawyers in Belgium
Restructuring and Insolvency Lawyers in BelgiumUpdated on Wednesday 07th December 2016
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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. Restructuring 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
The insolvency 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.