Corona crisis nears end, but new bottlenecks present themselves

Corona measures have now been discontinued or are being phased out in most countries. Further recovery of the economy is predicted. This is good news, but it should be borne in mind that this economic catch-up effect means demand is currently greater than supply. That means scarcity. Prices then go up, as is now the case with commodity prices, and more particularly energy prices. Added to this is the fact that existing supply chains are disrupted. Moreover, the end of generic support in the Netherlands on 1 October 2021 means that companies must stand on their own two feet again.

The bottom line is that even after the corona crisis it is unclear how the economy will develop and what that means for your business. Don't be surprised, but take action now. Only in this way will you find out whether there are challenges for your company and, if so, how these challenges can best be met. Timely action means that the number of solution options is increased. BUREN can help you with this.

What can BUREN do for you?
Our advisors can map out the legal and financial position of your company in the short term. This can be done via a quick scan, but a more extensive analysis is also possible. On the basis of this analysis we can advise you on the steps to be taken. Various follow-up steps are conceivable. These include, for example, reorganization, attracting new financing, stretching the existing financing or making payment arrangements with your creditors, obtaining more security from suppliers and renegotiating commitments to customers.

The company may benefit from a restructuring/refinancing, whether or not it is based on a compulsory composition plan (whether or not it is based on the WHOA, the Dutch acronym of the recently introduced Dutch scheme). You can read more about the WHOA here.

In addition to reorganization, obtaining capital can be an option, especially if there are also more structural problems. Bringing in a new partner can boost the business model, market access and innovation in addition to funding. This is the area of distressed transactions. These can take place both inside and outside of insolvency. For understandable reasons (more control, reduced damage to reputation) parties often strongly prefer the route outside insolvency. However, the law has the necessary obstacles here. BUREN can advise the entrepreneur on a distressed transaction and assist the company and its managers in this regard.

Unfortunately, in some cases the company can no longer be saved. Then it is wise to prepare for insolvency (prepack (if possible), moratorium or bankruptcy) in a controlled manner. In all of these processes our advisors from the Restructuring & Insolvency department can map out all possibilities, bottlenecks and (liability) risks for the company and its directors and other managers, and together seek the best solution. If your company is in dire straits and you continue to do business, the board may be held personally liable. The controlled cessation of your business, possibly followed by a dissolution and liquidation of the legal entity, can also be a solution.

Advice and guidance from BUREN can help you find solutions to any liquidity problems or discontinuity. Please feel free to contact us.