Insolvency, financing and securities
Every entrepreneur faces a financing issue sooner or later. For example, with the expansion of a business, a business acquisition or impending bankruptcy. La Gro Geelkerken's Insolvency, Financing and Securities team assists you when you start a business, expand an existing business or need financing. We have extensive experience as trustees and insolvency law attorneys and will act for you even in tough times.
Our driven lawyers have extensive experience in corporate restructuring and bankruptcy resolution. They also have in-depth knowledge of insolvency law and corporate law. We look ahead and assist you in making important decisions regarding the establishment, growth, reorganisation or possible termination of your business.
Our expert team is able to move quickly and provide clarity in often complex situations. When necessary, we work together in multidisciplinary teams with other internal and external specialists, such as our colleagues in the corporate law and labour law sections.
Here’s what we can do for you
Starting up or expanding a business generally requires financing. For all parties to a financing contract, it is important that the financing and the associated collateral are recorded in documentation prepared with due care.
Our team also acts for leading banks and other financial institutions. We advise on (re)financing and establishing collateral. Additionally, we have extensive experience in negotiating and enforcing collateral and conducting all kinds of legal proceedings in that area. Establishing and where necessary enforcing guarantees may involve security interests such as rights in rem, mortgages, liens and subordinations. We also regularly advise and litigate on personal security rights, such as bail bonds.
As a director and shareholder, you have a special position. As a financier and/or director, you also have your own interests. If the company falls on hard times, there may be consequences for you as well. Will you arrange for additional financing? Will you continue as a director or not? Are you potentially liable to third parties or any trustee to be appointed? Have you stood up to third parties for the company’s obligations, for example as a guarantor? These are all issues that we can help you with.
If your business is in dire straits, it’s nice to have a sparring partner. An attorney who thinks ahead and guides you through crucial decisions about the survival or termination of your business. Someone who negotiates with parties such as creditors, banks or the tax authorities.
When your supplier or debtor is in dire straits, quick action is often required. Preferably, matters are resolved even before a potential bankruptcy. But even during a bankruptcy, there are still opportunities to stand up for your interests. We have years of experience as trustees and know the ways to prevent or limit losses to your business.
If, on the contrary, you see opportunities in bankruptcy and are thinking of a relaunch, we will act quickly. We can conduct the negotiations with the trustee on your behalf and know exactly where the bottlenecks and the snags are in a relaunch. In bankruptcy, it is good for a director to have an attorney who speaks the language of the trustee. Our specialists can fulfil that role for you based on their extensive experience as attorneys and trustees.
As of January 1, 2021, the Homologation of Private Arrangements Act (WHOA) is in effect. This expansion of the Bankruptcy Code allows entrepreneurs who are at risk of bankruptcy to offer a proposal to creditors and shareholders, with the goal of restructuring debts or restructuring the company. This often helps avoid bankruptcies.
It has always been possible to reach an agreement with creditors based on eliminating part of their claim. In practice, however, it was virtually impossible, because all creditors had to agree to the arrangement. The WHOA allows an agreement to be imposed on dissenting creditors (and possibly shareholders) outside of bankruptcy or moratorium.
We have years of experience in restructuring and can provide you with legal guidance throughout the WHOA process. Want to know if the WHOA offers a solution for your business? Are you faced with a party proposing an agreement to you based on the WHOA? Then don’t hesitate to contact us as soon as possible to discuss the possibilities.