INSOLVENCY Series | Episode 5: Cross-border Insolvency and International Aspects

In today’s globalised economy, businesses commonly operate in multiple States and engage with international creditors. Consequently, financial difficulties faced by a business often transcend national borders. Hence, insolvency proceedings opened in a State will frequently have cross-border implications. Several questions arise when a debtor’s insolvency has or may have cross-border implications, namely: Jurisdiction: which courts […]

INSOLVENCY Series | Episode 4: Liquidation Proceedings

Preserving undertaking’s business continuity is one of the main purposes of the Belgian insolvency law. However, in some cases, the undertaking’s situation is so serious that there is no better option than its liquidation. Liquidation proceedings aim to winding up the debtor’s estate and distributing the proceeds among its creditors to pay off its debts. […]

INSOLVENCY Series | Episode 3: Public and private reorganisation procedures

An undertaking in financial distress can consider judicial reorganisation as a means of restoring its financial stability. The judicial reorganisation procedure (“JRP”) is the Belgian pre-insolvency procedure, whose purpose is indeed to safeguard the continuity of the undertaking facing financial difficulties. Belgian law provides for two JRPs: JRP by mutual agreement, which aims to reach […]

INSOLVENCY Series | Episode 2: Identifying risks and preventive tools

IDENTIFYING RISKS OF INSOLVENCY AND PREVENTIVE TOOLS TO AVOID INSOLVENCY Insolvency proceedings, and in particular liquidation proceedings, should remain a last resort. Accordingly, the Belgian Code of Economic Law (“CEL”) contains several preventive mechanisms designed (1) to detect the risk of insolvency in due course, and (2) to take preventive measures to redress undertakings’ financial […]