Best Restructuring & Insolvency Lawyers in Slagelse

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Advokathuset Slagelse
Slagelse, Denmark

Founded in 1935
English
Advokathuset Slagelse is a distinguished law firm located in Slagelse, Denmark, offering comprehensive legal services to small and medium-sized enterprises, local governments, and private individuals. The firm's team of attorneys, paralegals, and support staff is dedicated to delivering tailored...
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About Restructuring & Insolvency Law in Slagelse, Denmark

Restructuring and insolvency law deals with the legal framework and processes meant to address financial distress in businesses or individuals in Slagelse, Denmark. This area of law aims to protect creditors' interests, give debtors a fair chance to reorganize or liquidate assets, and maintain the overall health of the business community. In Slagelse, as in the rest of Denmark, restructuring can be seen as a preventative measure to save a financially troubled company, while insolvency often leads to the dissolution of the business through bankruptcy proceedings. Danish laws provide various tools and procedures for both preventive restructuring and formal insolvency, helping debtors and creditors reach the best possible outcome.

Why You May Need a Lawyer

There are several situations where seeking legal advice in restructuring and insolvency becomes necessary in Slagelse:

  • Your business is experiencing financial difficulties and you are unsure about the next steps
  • You are facing pressure from creditors or receiving payment demands
  • You want to negotiate with creditors to restructure existing debts
  • You are considering filing for bankruptcy or are threatened with bankruptcy proceedings
  • You are a creditor and need help recovering your claim in an insolvency case
  • You need to understand your rights and obligations as a stakeholder in a restructuring or insolvency process
  • You suspect fraudulent activity or mismanagement in a distressed company
  • You are involved in cross-border insolvency issues with a Danish entity

Legal expertise can help you navigate these situations, ensuring you comply with local laws and make informed decisions during stressful times.

Local Laws Overview

The regulatory framework for restructuring and insolvency in Slagelse, Denmark, is governed primarily by the Danish Bankruptcy Act (Konkursloven). Some key aspects include:

  • Voluntary Restructuring: Companies can initiate voluntary restructuring to avoid insolvency. This process involves creating a plan with creditors' approval, supervised by a court-appointed restructuring administrator.
  • Bankruptcy Proceedings: Bankruptcy (konkurs) is initiated when a debtor is unable to fulfill its obligations as they fall due. The court appoints a trustee (kurator) to oversee asset liquidation and creditor payouts.
  • Creditor Rights: Creditors can submit claims during proceedings and may form creditor committees to influence decisions.
  • Preferential Rights: Certain claims, like employee wages and taxes, have priority over unsecured creditors.
  • Directors’ Duties: Management has a duty to act in the interests of creditors when insolvency becomes inevitable, including filing for bankruptcy promptly to avoid liability.
  • Cross-border Aspects: The law incorporates EU Insolvency Regulation, relevant for cases with international elements.

Understanding these rules is crucial for anyone facing restructuring or insolvency in Slagelse.

Frequently Asked Questions

What is the difference between restructuring and bankruptcy in Denmark?

Restructuring is a process that aims to rehabilitate a company in financial trouble, often involving agreements with creditors. Bankruptcy, or konkurs, is the formal process of liquidating assets to pay off creditors when a debtor is unable to meet obligations.

Can individuals and businesses both file for bankruptcy in Slagelse?

Yes, both private individuals and businesses can file for bankruptcy in Denmark, including Slagelse, if they are unable to pay their debts as they fall due.

How is a bankruptcy case started?

Bankruptcy proceedings can be initiated either by the debtor themselves or by a creditor filing a petition at the local bankruptcy court. The court will then decide whether to accept the case based on the debtor’s financial situation.

What happens to employees if a company goes bankrupt?

Employees’ claims, such as unpaid salaries and holiday pay, are considered preferential and are paid out before unsecured creditors. The Employees’ Guarantee Fund may cover certain wage claims.

Will my business automatically stop operating during restructuring or bankruptcy?

Not always. In restructuring, the goal is often to keep the business running while solutions are sought. In bankruptcy, the trustee may continue operations temporarily if it benefits creditors, but usually, business activities will be wound down.

What are my duties as a director if my company is facing financial difficulties?

Directors are obligated to protect creditors’ interests and must file for bankruptcy if insolvency is unavoidable. Failing to do so can lead to personal liability for losses suffered by creditors.

Can creditor claims be challenged in insolvency proceedings?

Yes, claims can be contested by the trustee or other creditors if they believe a claim is invalid, inflated, or based on improper transactions.

What is the role of a restructuring administrator?

The court appoints a restructuring administrator to oversee and coordinate the restructuring process, ensuring fairness and adherence to legal requirements.

Is cross-border insolvency possible in Slagelse?

Yes, international insolvency cases can be handled in Slagelse, following both Danish law and applicable EU regulations.

Can I appeal decisions made in bankruptcy or restructuring proceedings?

In certain circumstances, parties can appeal decisions to higher courts or seek a review if procedural errors have occurred.

Additional Resources

Several organizations and governmental bodies can assist individuals and businesses facing restructuring or insolvency challenges in Slagelse:

  • The Danish Courts (Domstolene): Responsible for handling insolvency and bankruptcy proceedings
  • The Danish Business Authority (Erhvervsstyrelsen): Offers guidance on company obligations and restructuring
  • The Employees’ Guarantee Fund (Lønmodtagernes Garantifond): Provides compensation to employees of bankrupt companies
  • Local Law Firms: Specialized in insolvency and restructuring advice
  • Chamber of Commerce Slagelse: Offers business support and resources for local enterprises

Contacting these organizations can provide clarity on initial steps and relevant documentation requirements.

Next Steps

If you or your business are experiencing financial difficulties or have questions about restructuring and insolvency in Slagelse, consider the following steps:

  • Assess your financial situation and gather all relevant financial documents
  • Consult a qualified lawyer with experience in restructuring and insolvency law in Denmark
  • Contact local resources, such as the court or business support services, for general information
  • Act promptly to protect your rights and avoid personal or company liability
  • Prepare for meetings with legal advisors by making a list of creditors, outstanding debts, and ongoing business contracts

Remember, early action can improve the chances of achieving a favorable outcome, whether through restructuring or managing insolvency proceedings effectively. Seek professional advice to ensure you are guided correctly throughout the process.

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Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation. We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please contact us, and we will review and update it where appropriate.