by Evert Verwey
In 2013 the Dutch legislature announced that an amendment of the Dutch Bankruptcy Act was necessary and that the “continuity of companies” was a priority.
It was announced that three new acts would be drafted:
• Act on the Continuity of Companies I: Pre-pack proceedings (See: Eurofenix, Spring 2014, p. 33-35.)
• Act on the Continuity of Companies II: Composition outside bankruptcy proceedings.
• Act on the Continuity of Companies III: Duty for suppliers to continue to supply in bankruptcy.
The main goal of these new acts is to preserve the value of an insolvent company and to provide more restructuring options in order to achieve a higher return for creditors.
On 14 August 2014, the Dutch Minister of Security and Justice presented a draft bill for an Act on the Continuity of Companies II, which provides a
statutory basis for a composition outside of insolvency proceedings. Interested parties have been given until 11 November 2014 to comment on the draft bill, after which it will be submitted, possibly in amended form, to the Dutch parliament.
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