I1 September 2023: restructuring directive for SMEs enters into force
October 2023 - On 7 June 2023, the restructuring directive 2019/1023 was implemented in Belgian law. The new law came into force on 1 September 2023, with an impact on all judicial reorganisation proceedings opened from that date. For SMEs, there are some important points to bear in mind.
Which enterprises qualify as 'SMEs'? According to the new restructuring law, a company is 'small' if it does not exceed any of the following criteria for two consecutive financial years: an annual average of 250 employees, an annual turnover (excluding VAT) of 40 million euros and a balance sheet total of 20 million euros.
Issues to remember:
The use of preventive measures, including the summoning of certain creditors with a view to settlement in the event of imminent insolvency, the appointment of a restructuring expert and a debtor who remains fully disposable.
The introduction of an initial suspension period of up to four months (during which the debtor is protected), with the possibility of extension for up to 12 months.
The introduction of a closed (rather than public) judicial reorganisation procedure, which allows a debtor to negotiate with part of its creditors in a confidential judicial setting.
Pre-pack procedure or silent bankruptcy: a debtor who thinks it is in a state of bankruptcy can ask the court to prepare the transfer of all or part of its assets and activities prior to the declaration of bankruptcy.
