In 2025, the following developments can help you navigate complex financial landscapes, protect assets, and make informed decisions to address financial challenges ensuring survival or orderly dissolution when facing financial distress.
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1. Bankruptcies are on the rise again
The number of bankruptcies opened in the Netherlands continues to gradually pick up, showing an increase of more than 80% compared to 2022. This makes the following things to note (even) more important!
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2. Duty to file for bankruptcy
The Council of the European Union has reached agreement on certain amendments to the text of the EU Commission proposal for a directive to harmonise aspects of insolvency law. If this directive comes into effect, the Netherlands must (among other things) introduce an obligation for directors to file for insolvency proceedings. The directors should file in a timely manner, which will be (no later than) three months after they have become aware, or reasonably should have become aware, that the company is insolvent. Although this diminishes the flexibility directors currently have, the filing obligation under Dutch law will be suspended if the directors take other measures to prevent creditors from being worse off by continuing the operations.
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3. Impairing interest claims in composition plans
The Dutch Supreme Court held last year that interest claims as of the date of bankruptcy cannot be part of a composition plan in bankruptcy. The reasoning behind the judgment is also applicable to other claims that cannot be verified in bankruptcy, such as penalties or vacancy loss for landlords (leegstandsschade). The judgment creates further distance between the traditional composition plans in bankruptcy and suspension of payments, and the more recently introduced WHOA plan (where compromising these claims is possible).
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4. Recognition issues in cross-border restructuring proceedings
Forum shopping for restructuring friendly jurisdictions is of all times. Recently, in Intercement it has again been subject of intensive debate and litigation in connection with the recognition of a Brazilian group restructuring process in the Netherlands and in the United States. The Brazilian process included Dutch and Spanish group companies, raising complex questions about their COMI, because proceedings were also opened concurrently in the Netherlands and Spain. The uncertainty of recognition makes parallel proceedings in various jurisdictions a relevant feature in cross-border restructurings.
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5. Further developments in insolvency law
Dutch State Secretary Teun Struycken announced in his letter to parliament to further modernise Dutch insolvency law, particularly in (i) pre-packs and TUPE in bankruptcy (overgang van onderneming, WOVOF/WCO I), (ii) financing for bankruptcy trustees (the issue of estates without proceeds) and (iii) WHOA. His plans will be announced in Q1, so stay tuned for more updates to come!
Do you have any questions?
We will keep you informed of any new developments. Should you have any questions, please feel free to contact our Restructuring, Insolvency & Distressed Situations team.