Companies In Distress: The Current Crisis Does Not Mean The End Of Your Company!

• Published date: 03 April 2023
• Subject Matter: Corporate/Commercial Law, Corporate and Company Law
• Law Firm: Monard Law
• Author: Ms Sofie Souvereyns and Geert Hayen

There are many solutions if your company is in financial trouble.

Financial problems do not mean the end of your company

If your company is undergoing financial difficulty that is jeopardizing its business continuity, or if your company finds itself under more financial stress because of the current crisis, this does not necessarily mean you have to stop your business or even go bankrupt.

By seeking legal advice on time, you can actually buy time and remove the financial pressure.

Judicial reorganization offers various solutions

Judicial reorganization is a procedure that can give your company the financial space it needs to enable it to have a stronger, more streamlined way to continue running.

Thanks to judicial reorganization, your company is protected against its creditors. More specifically, you are granted a suspension period (moratorium) during which your creditors are not allowed to take any enforceable measures against your company or file a claim to have your company declared bankrupt or dissolved.

Judicial reorganization can take different forms

Judicial reorganization can take 3 different forms, depending on the specific needs of your company. Concretely, you can apply for judicial reorganization with a view to (i) obtaining an amicable arrangement with your creditors, (ii) obtaining a collective arrangement with them, or (iii)...