Topic: Debt

A company can agree with its creditors to restructure its debts through various processes. This usually happens when the company’s underlying business is experiencing financial difficulties. The statutory processes are a scheme of arrangement (Scheme), restructuring plan (RP), and a company voluntary arrangement (CVA).

In the second of this two-part post, we continue our overview of claiming in a debtor’s insolvency. In particular we look at contingent debts, interest on debts, and debts in foreign currencies.

Under English insolvency law, creditors “prove” for their debts against an insolvent debtor’s assets.

The Rotterdam District Court, the Netherlands, has ruled that an amendment to the ranking of security rights is not possible under the Dutch Scheme procedure (WHOA), without the consent of the relevant secured creditors.