The bill for an Act on the Confirmation of Private Plans (‘ACPP’), submitted on 5 July 2019, enables a business on the brink of insolvency to impose a compulsory plan on its creditors and shareholders, outside suspension of payments and bankruptcy proceedings. The ACPP bill takes inspiration from the British Scheme of Arrangement and the US Chapter 11 procedure. The pre-insolvency plan provided for in the bill will give companies in financial difficulties an excellent opportunity to restructure. It will then no longer be necessary, as Van Gansewinkel Groep BV did in 2015, for example, to move to England for this purpose. The Netherlands is expected to become a very appealing jurisdiction for struggling businesses wishing to restructure.
Pieter Christiaan van Prooijen of Hermes Advisory and Martin Poelman of Wintertaling discuss the main features of the ACPP bill in a contribution of October 2019, which you can find here. For more information on this subject please contact Martin.