Financial difficulties - Belgium
The Business Continuity Act contains provisions to quickly identify companies in difficulty and help them to respond and recover.
Stabilising a Company
Systematic data collection by the commercial courts helps to determine which companies to monitor and, where necessary, sets into motion judicial reorganisation proceedings. This allows time for companies which are in difficulty but solvent to reorganise and recover.
The commercial courts gather data and present their findings to the public prosecutor. This individual or the business owner may then take the initiative to begin the judicial reorganisation process.
The commercial court assesses the business's position and, as it deems appropriate, calls for judicial composition (reorganisation). Following a hearing, the business owner is presented with corrective measures, a settlement, or liquidation.
Access to different sources of finance can help overcome financial difficulties.
When filing for bankruptcy is the only option left for a business owner, it pays to cut your losses, initiate proceedings sooner rather than later, and move on to a new project.
Check also the legislation on this topic in: