More Scope for Quiet Negotiations if Bankruptcy Threatens
THE HAGUE, 23/10/13 - The existing practice of appointing silent receivers in case of threatened bankruptcy is to be given a legal basis. Justice Minister Ivo Opstelten sent a proposed bill on approval for commentary Tuesday.
Last year, silent receivers were appointed by the courts at dozens of troubled companies. They were given the commission of quietly preparing a re-start of the company or parts of the company. Unlike the case of an ‘ordinary’ bankruptcy, companies, jobs and knowhow are in this way retained. Additionally, the practice shows that the creditors can also benefit from a silent receiver.
Despite the good experiences, three of the 11 court regions are still not participating in the experiment. The Utrecht, Limburg and Overijssel courts do not want to name any envisaged receiver without a legal basis. Opstelten is now offering just this in his draft bill.
In view of the many positive signals from the sector, the minister wants to amend the law as quickly as possible. After a consultation phase of three months, the proposal along with possible amendments will go to the Council of State. The bill should be with the Lower House before summer 2014.