Insolvency: Flattening the Insolvency Curve: The Belgian Statutory Moratorium bis
28/12/2020

The COVID-19 pandemic is having a significant impact on the world economy, as businesses worldwide face liquidity problems and related insolvency risks. Given the exceptional nature of this crisis, it is generally accepted that companies need to be supported in order to weather this crisis. The Special Decree Nr. 15 of 24 April 2020 (concerning the temporary suspension of enforcement measures in favour of businesses) temporarily protected Belgian companies against, inter alia, bankruptcy petitions and (certain) enforcement measures. Companies that were fundamentally healthy, but still affected by the COVID-19 measures, were protected this way. The first Moratorium was in line with initiatives taken by other EU Member States and ran from 24 April 2020 until 17 May 2020. 

The Belgian legislator recently decided, as a reaction to the "second wave" of COVID-19, to reactivate the Moratorium. After all, the exceptional situation, which justifies such a far-reaching measure, is still an issue. The new Moratorium, which is outlined below, will be applicable from the 24 December 2020 until 31 January 2021.

The Government works simultaneously on measures to optimize insolvency law in view of the expected wave of bankruptcies in 2021. 

The key features of the new Moratorium are summarized in the table below.

Stan Brijs and Sophie Jacmain, partners in our Restructuring & Insolvency department, comment as follows on the Moratorium: "The initial Moratorium was a uniform and temporary measure, which was simple and easy to implement. This measure, applied in conjunction with other financial measures, proved to be particularly effective. In this exceptional crisis year, bankruptcy figures are historically low.

The second Moratorium is justified for those companies affected by the mandatory shutdown measures. These companies are indeed deprived of the possibility of generating any turnover, in order to prevent the further spread of the virus. However, one must prevent those companies, which are fundamentally healthy, to go down because of a bankruptcy virus. The protection of the new Moratorium provides room for such companies to seek a more sustainable solution in consultation with all stakeholders.

Zie ook : NautaDutilh ( Mrs. Sophie Jacmain ,  Mr. Stan Brijs ,  Mr. Arie Van Hoe )

[+ http://www.nautadutilh.com]

Mrs. Sophie Jacmain Mrs. Sophie Jacmain
Partner
sophie.jacmain@nautadutilh.com
Mr. Stan Brijs Mr. Stan Brijs
Partner
Stan.Brijs@nautadutilh.com
Mr. Arie Van Hoe Mr. Arie Van Hoe
Associate
Arie.vanHoe@nautadutilh.com

Click here to see the ad(s)
Alle artikels Ondernemingen in moielijkheden

Laatste artikels Ondernemingen in moielijkheden

Opnieuw insolventie moratorium tot 31 januari 2021
12/01/2021

Op 24 december 2020 is een nieuw automatisch moratorium in werking getreden. Dit moratorium beschermt Belgische ondernemin...

Read more

New moratorium for enterprises in difficulty
07/01/2021

Belgium has recently adopted extra measures to combat the negative economic impact of Covid-19.

New moratorium for enterprises in difficulty Read more

Judicial reorganisation procedure: two draft bills pending under the benefit of urgency
11/12/2020

The legislator has tabled two draft bills, respectively on 10 June 2020 and 21 October 2020, to amend a.o. the provisions ...

Judicial reorganisation procedure: two draft bills pending under the benefit of urgency Read more

De bedrijfsleider als borgsteller voor vennootschapsschulden: valt er fiscaal iets te recupereren?
20/07/2020

Het is een herkenbare situatie, al zeker in een crisisperiode. Een vennootschap wenst te investeren. Daarvoor heeft zij kr...

De bedrijfsleider als borgsteller voor vennootschapsschulden: valt er fiscaal iets te recupereren? Read more

Laatste artikels van Mrs. Sophie Jacmain

Coronavirus Insolvency: Monitor the risks
26/03/2020

Be aware of the increased risk of default by debtors. With the spread of the virus, there is a heightened risk of financia...

Read more

Do Businesses Still Have Freedom of Contract?
27/12/2019

On 21 March 2019, the House of Representatives adopted legislation modifying the Code of Economic Law with regard to the a...

Read more

Entry into Force of the New Belgian Insolvency Code
03/05/2018

Over the past few years, the Belgian legislature has consolidated various pieces of legislation regulating businesses into...

Read more

New Belgian Insolvency Code Voted in Parliament
14/07/2017

Yesterday, the House of Representatives has adopted a bill containing an entirely new Insolvency Code. As already indicate...

Read more

Laatste artikels van Mr. Stan Brijs

Coronavirus Insolvency: Monitor the risks
26/03/2020

Be aware of the increased risk of default by debtors. With the spread of the virus, there is a heightened risk of financia...

Read more

Entry into Force of the New Belgian Insolvency Code
03/05/2018

Over the past few years, the Belgian legislature has consolidated various pieces of legislation regulating businesses into...

Read more

New Belgian Insolvency Code Voted in Parliament
14/07/2017

Yesterday, the House of Representatives has adopted a bill containing an entirely new Insolvency Code. As already indicate...

Read more

On the Eve of a New Insolvency Code
24/04/2017

A bill containing an entirely new Insolvency Code was presented to the House of Representatives on 20 April 2017. The need...

Read more

Laatste artikels van Mr. Arie Van Hoe

LexGO Network