Restructurings

The new Danish rules on the restructuring of businesses came into force on 1 April 2011. Under the rules, both management and creditors can file applications for restructuring with the local bankruptcy court. To be subject to the new rules, a restructuring process must involve a business transfer and/or compulsory composition, which may be followed by bankruptcy proceedings.

The new restructuring rules incorporate elements of the previous legislation regarding the suspension of payments, as well as a number of bankruptcy rules – including the ability to apply bankruptcy rules to bilateral contracts and avoid transactions that affect the priority of and/or defraud creditors, where such transactions occurred shortly before the commencement of the restructuring proceedings.

We have extensive experience in acting as supervisors for businesses in suspension of payments and in handling bankruptcy proceedings, business transfers in connection with bankruptcies or the suspension of payments, and compulsory compositions. We therefore have the skills and expertise required for taking on the new role of restructuring administrator ("rekonstruktør" under the new Danish legislation) for failing businesses.

Businesses in the process of restructuring - operations and creditor interests

We are able to assist businesses with planning operations during the restructuring process. This may involve changes in relation to bookkeeping, purchasing and contracting procedures, adaptation of operations to the new situation, and the drawing up of a restructuring plan to be approved by the bankruptcy court.

We know which steps to take to apply the bankruptcy rules to day-to-day business operations. We start by adopting a procedure which simultaneously allows the business to continue operations and safeguards the interests of creditors.

We aim to draw up a sustainable and realistic restructuring plan, providing dynamic and practical solutions that meet each client's particular business needs without compromising on the principles dictated by the Danish Bankruptcy Act.