The highly anticipated Dutch legislation regarding Court Confirmation of Extrajudicial Restructuring Plans (CERP) was already expected to take effect somewhere in 2020. The current circumstances regarding the (COVID-19) coronavirus increases the pressure on the Dutch legislator to implement the scheme very soon. CERP is designed for companies that are in itself profitable, but suffer from over-indebtedness or high structural costs and thus need to have their debts and obligations reassessed. Legal professionals envision that CERP will provide a unique and highly effective restructuring tool.
The goal of the new legislation is to allow companies to restructure without utilizing traditional formal insolvency proceedings.
This leaflet will provide a short overview of the new legislation and its groundbreaking features.