Early reorganisation proceedings

If your company is only threatened with insolvency, it may be possible to apply for early reorganisation proceedings. In a situation where your company is already insolvent, only basic corporate reorganisation proceedings are possible.

Only the indebted company can apply for early reorganisation proceedings. There are fewer obstacles to the commencement of early reorganisation proceedings than basic reorganisation proceedings.

Early reorganisation is not prevented by the fact that

• the purpose of the reorganisation would be to prevent the collection of debts or other violation of the creditors’ or debtors’ rights
• the conditions for the implementation or approval of the reorganisation programme do not exist, for example, the creditors do not have enough trust in your company.

In addition, the impediments to basic corporate reorganisation do not apply to the early reorganisation proceedings. For example, a previous accounting offence is not an obstacle to early reorganisation proceedings.

Unlike in the case of basic reorganisation proceedings, the prohibitions on payment and collection and any other prohibitions related to reorganisation debts do not automatically enter into force in early reorganisation proceedings. If prohibitions are necessary, they must be requested from the court separately and will only be valid for a certain period.