Belgium introduces pre-pack reorganisation

The Belgian Chamber of Representatives approved a law modifying the Belgian insolvency code (the “Pre-Pack Law“).  The Pre-Pack Law will shortly be published in the Belgian State Gazette and enter into effect (*)  The Pre-Pack Law will introduce, among other measures, a non-public pre-pack reorganisation.  The key features of this pre-pack reorganisation are as follows:

  • The pre-pack reorganisation is not a new procedure.  Rather, it takes the form of a court-authorised and court-supervised preparatory negotiation phase (the “Pre-Pack Phase“).  If successful, the process will be converted into a regular public judicial reorganisation procedure (the “Judicial Reorg Phase“). 
  • In the Pre-Pack Phase, a judicial officer will be appointed by the court to participate in the negotiations with the (key) creditors.
  • The Judicial Reorg Phase will then have the objective of either an amicable agreement approved by and binding on two or more individual creditors, or a collective agreement approved by a majority creditor vote and binding on all dissenting creditors. 

(*) De wet werd ondertussen gepubliceerd in het BS :

Wet van 1 maart 2021 tot wijziging van boek XX van het Wetboek van economisch recht en het Wetboek van de inkomstenbelastingen 1992, BS 26 maart 2021

Volledig artikel en bron : Corporate Finance Lab – A post by guest bloggers Eric Blomme and Cécile Odeurs (Baker McKenzie)

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