Category: Insolvency law in The Netherlands
An administrator can hold the director of a bankrupt enterprise liable for the remaining debts of the estate in the event of mismanagement. In principle, it is then up to the administrator to prove that the director of this enterprise is seriously personally culpable. However, this burden of proof is reversed in a few special situations. Based on a recent case, bankruptcy lawyer Hidde Reitsma explains these situations.
Read more about: Violation of the administration obligation and director’s liability: AMS explains!
This Dutch court case concerns a finance company with an undeclared right of lien on a Bentley. The party issuing the pledge did not pay the finance company. Subsequently, the finance company wished to lay its claim on the Bentley pledged to it via an undeclared right of lien. According to the purchaser of the Bentley – the party at whose feet the finance company laid the claim – this approach did not hold water, and he could simply keep the Bentley because he had purchased it in good faith. Dutch insolvency lawyer Hein Hoogendoorn discusses the meaning of an undeclared right of lien in the Netherlands based on this ruling.
Read more about: Undeclared right of lien on a Bentley. Good-faith buyer?
In the Netherlands, in the event of a bankruptcy, the court appoints a liquidator. The examining magistrate then supervises the liquidator’s actions. For certain activities, including entering into settlements with parties on whom the estate has a claim, the liquidator also requires permission or authorisation from the examining magistrate. In this case, the examining magistrate denied permission to conclude a settlement. An appeal against this decision was then lodged with the Dutch court. Dutch insolvency lawyer and liquidator Hein Hoogendoorn explains this court case.
Read more about: Examining magistrate forbids liquidator to settle. Can this prohibition stand up?
AMS often blogs about the settlement of estates. The Dutch settlement procedure is a multifaceted procedure which in principle should be followed by acceptance with the benefit of inventory of an estate by one or more heirs. However, sometimes it is also possible to apply to the Court for the appointment of a trustee. Dutch insolvency lawyer, Hidde Reitsma, who is regularly appointed by the Courts as trustee, explains.
Read more about: Requesting the appointment of trustee of estate in the Netherlands
A trustee wants to initiate a claim in insolvency proceedings against an Indian company. But is the Dutch court competent to hear this dispute? And what if the dispute does not involve the bankruptcy itself, but a (derived) Paulian action against fraudulent acts in respect of creditors? Who is competent then? These questions were addressed in a recent case involving international insolvency law. Dutch lawyer for insolvency law Hidde Reitsma discusses the ruling.
Read more about: International insolvency law: does a Dutch court have jurisdiction?
In a recent case before the Court of Appeal of Amsterdam, a dismissal of a company’s own application for bankruptcy was upheld in appeal. The Court of Appeal found that the authority of a company to apply for its own bankruptcy had been misused. When is there misuse? Dutch insolvency lawyer Heleen Ceelen explains.
Read more about: Misuse of authority in company’s own bankruptcy application?
In a recent ruling the Court of Appeal of The Hague upheld the bankruptcy of a private limited company that had been declared in spite of the fact that the company had ceased to exist (with a so-called expedited dissolution) after the application for bankruptcy was filed, but before the application had been heard. Lawyer Heleen Ceelen discusses the possibilities of the bankruptcy of a company after liquidation.
Read more about: Bankruptcy possible after expedited dissolution of Ltd
After the banks announced they would not be providing any new finance, Imtech filed for suspension of payments. This means that most creditors temporarily could not lay claim to Imtech property. Last Thursday, Imtech was declared bankrupt, which meant the suspension of payments was changed into a bankruptcy. Many suppliers are at risk of losing money. Dutch bankruptcy law specialist Sander Schouten discusses the options which exist to safeguard the rights of creditors as far as possible.
Read more about: Creditor of bankrupt Imtech in The Netherlands? This is what you can do