Dutch Senate approves Act on the Confirmation of Private Restructuring Plans (‘ACPRP’)
Utrecht, October 2020
On Tuesday the 6th of October, the Dutch Senate approved the Act on the Confirmation of Private Restructuring plans, or ACPRP. The law will probably come into effect on the 1st of November 2020 or the 1st of January 2021. Beaufort thinks this law provides a welcome new restructuring tool and we are ready to assist organisations that want to use the new law to restructure their debt.
About the ACPRP
The ACPRP gives debtors, whose debt position puts the continuation of an otherwise viable business at risk, the option to restructure their debt position without a bankruptcy by making an offer to its creditors in a Restructuring Plan. The judge can homologate the Restructuring Plan. It is not required that all creditors agree with the Restructuring Plan. Creditors who voted against the Restructuring Plan can be overruled by the judge through the homologation, as long as the Restructuring Plan is in accordance with the requirements set out in the law.
The law aims to provide debtors with a tool that can help them to prevent a bankruptcy, which is often beneficial to both the debtor as well as its creditors.
Beaufort and the ACPRP
Both legal as well as financial expertise is required in order draw up a viable Restructuring Plan. The law requires, amongst other financial analyses, that the debtor’s business is valuated by a valuation expert. It can further be relevant to draw up several business cases and/or scenario’s. Beaufort’s professionals are very experienced with these analyses in the context of business restructurings.
We have therefore followed the developments with respect to the ACPRP closely and with great interest. Together with lawyers from CMS, we have made an interactive workshop in which the most important aspects of the procedure are tackled. If you are interested in this workshop, or if you have other questions with respect to the ACPRP, please contact Koos van Delft, Michiel Tempelman or Matthijs van Essen.
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