Belgium was slow to transpose the European Directive (EU) 2019/1023 on preventive restructuring frameworks into national legislation. This has now been done with the recent draft law of 20 March 2023.
The aim of European and subsequently Belgian legislators is to enhance the efficacy of procedures intended to sustain the operations of struggling companies.
The range of tools available to companies for negotiating agreements with their creditors in case of financial difficulty has been extended.
Simultaneously, the legislator has ensured that the financial information provided by companies in distress is of improved quality.
The frameworks and agreements for anticipatory restructuring, which are soon to be introduced, are designed to be flexible, so as to adapt as closely as possible to the particular requirements of each company.
The early warning system for struggling companies has also been fortified, among other measures, by requiring accountants to alert their clients.
Lastly, the possibility of a private (confidential) bankruptcy preparation procedure and the creation of classes of creditors in the event of PRJ by collective agreement of large companies are potential features to mention.
Upon the bill’s passage, Book XX of the Economic Law Code will conform entirely with the spirit of the European directive, covering all economic entities with the exception of public companies.
For further information or to avail of these anticipatory restructuring frameworks, the leaders of such entities may always consult the specialized lawyers at DALDEWOLF.