On 16 September 2011 the Netherlands Supreme Court rendered an important judgment regarding the exercise by a bank of its right to reverse a direct debit (LJN BQ873 SNS Bank/Pasman q.q.). In light of this judgment it can be concluded that, in principle, a bank may exercise its right of reversal not only if the direct debit caused the account to be overdrawn or (if an overdraft facility has been granted) the limit to be exceeded, but also if the bank will, as a result of the debtor/payer's bankruptcy, be unable to recover the claim resulting from the direct debit.
De Nederlandsche Bank (DNB) began the process of appointing receivers Monday for DSB Bank NA (DSB) after DSB experienced a “run” when rumors of its insolvency spread via Twitter and other outlets.
Earlier today, DSB Bank N.V. (DSB) was declared bankrupt and ordered to liquidate, ending hopes the regional lender, which last week suffered a run on deposits and was subsequently put into receivership, might be sold or bailed out.
DSB Bank (DSB), a small Dutch lender, has been declared bankrupt on 19 October 2009. Other Dutch banks will now have to guarantee DSB's deposits. The Dutch central bank said on 19 October 2009 that it had activated the national deposit guarantee system to deal with the bankruptcy, and that it expects eligible depositors to be reimbursed by Christmas. The banks will have to pay into the guarantee system in proportion to their market share.
On September 23 2009 the Amsterdam District Court granted the holder of a pledge over the shares in the capital of Schoeller Arca Systems Services BV authorization for foreclosure on the pledge by way of a private sale. Foreclosure on a pledge over Dutch shares is rare. The decision introduces the possibility for a secured lender either to wipe out subordinated mezzanine debt or to implement a loan-to-own strategy.
Facts
In 2007 Schoeller Arca Systems, its parent and subsidiaries (known as the SAS Group) entered into:
Introduction
The credit crisis has led to many opportunities for financial and strategic buyers to purchase all or part of a business or assets from financially troubled companies at significantly discounted prices. In such deals, buyers run the risk that the transaction may be set aside on the basis of voidable preference rules (the so-called 'actio pauliana').
The Act amending the Financial Markets Supervision Act and the Bankruptcy Act (Wet tot wijziging van de Wet op het financieel toezicht en de Faillissementswet) in connection with consolidation of claims on the estate in the event of emergency regulations, moratorium on payments and bankruptcy, and requests for compensation on the grounds of the Safety Net Scheme entered into force on 16 March 20091.
On October 13 2008 the Amsterdam District Court declared the emergency regulations underthe Financial Supervision Act applicable to the Dutch branch of Landsbanki (Icesave).(1) This update looks at:
In cross border financing transactions, a secured creditor should be aware of Dutch law specifics when dealing with a Dutch obligor in financial distress. Below is a highlighted list of specifics for a secured creditor planning to foreclose on its security or when seeking to improve its security position.
Improving security position
Existing Dutch security documents typically provide for possibilities for improving the position of a secured creditor in case of an event of default.
Getting a tighter grip on collateral