Judicial reorganisation: a tool to bounce back, not an admission of failure

Set out in Book XX of the Belgian Code of Economic Law, judicial reorganisation aims to preserve the continuity of all or part of a business.

A moratorium to negotiate

The enterprise court can grant a moratorium during which creditors generally cannot enforce their claims. The business uses this time to reorganise.

Three possible routes

• An out-of-court agreement with two or more creditors;
• A collective agreement: a reorganisation plan put to a creditors’ vote;
• A court-supervised transfer of all or part of the business.

Act early

The earlier the procedure starts, the better the chances of success. Directors also have every interest in documenting the steps they take from the first warning signs.

A first confidential meeting often uncovers amicable solutions before even going to court.