The Day of business owner

Today (19-11-2021) is "The Day of business owner". I wish all business owners a happy and successful day. But these are not easy times: unfortunately, social conditions do not invite celebration. The number of bankruptcies is expected to increase dramatically by 2022. Directors would be wise to examine in good time what a possible bankruptcy of one or more of their companies means for their position and that of their group.

If your company has water on its lips, consider our insolvency due diligence: a quick-scan to prevent or limit your #management's #liability and your group's #risks in the event of imminent #bankruptcy. What are your #banking, #tax and #civil risks? Good entrepreneurship implies looking ahead, anticipating and understanding the various scenarios.

The insolvency due diligence: a quick-scan on your risks

Good entrepreneurship is - always and continuously, but certainly also in times of this corona crisis - mapping out all possible scenarios in which your company could find itself. So also mapping out the consequences of a possible (approaching) bankruptcy. This can be done using a quick-scan. We carry it out as if we were the receiver of your BV.

Good entrepreneurship

Because our attorneys insolvency law team also works as court-appointed trustees or administrators in bankruptcy or suspension of payments, we have extensive experience in this area. For our consulting practice, we have prepared a comprehensive checklist with points of interest for business owners to prevent or limit private liabilities and unpleasant consequences for affiliated group companies.

Checklist

This checklist is continuously updated based on the latest case law, legislation and daily practical experience. If your company is in dire straits, it is not too late to have your company and group companies and your position as a director reviewed. This is often "forgotten" at this stage because the main focus is on keeping the company itself afloat. Which makes perfect sense. But if your company fails in spite of this, it can cost you twice as much if your other group companies also suffer damages due to the bankruptcy and/or you are also held privately liable for actions that could have been (easily) prevented.

Quick-scan

In the phase (shortly) preceding a bankruptcy, different rules apply and actions of a director or with a group company are put under a magnifying glass. The quick-scan clarifies, for example, which actions you can or can no longer perform or can only perform under certain circumstances. The (existing) fiscal, banking and civil risks are also identified, on the basis of which you can determine your most promising strategy together with us.

Solutions

If the quick-scan shows that the liquidity problems can be solved with a follow-up process, we can help you further. For example by:

• Attracting external financing (banking, leasing, factoring, crowdfunding, stack financing) or new capital, through equity issuance, an acquisition, an informal investor or business angel.
• Implementing a restructuring of current contracts or a reorganization of the workforce.
• Hands-on guidance in an out-of-court settlement, a WHOA settlement, a moratorium settlement, a bankruptcy settlement or perhaps a reorganization through bankruptcy with subsequent intended relaunch.
• Carrying out a collection process, as a result of which bad debts turn out to be collectable after all.
• If the company can no longer be saved, we will guide your client to bankruptcy with a soft landing for the director. So that unnecessary damage is avoided as much as possible even in that scenario.