12.10.2 Positive points

Documentgegevens:

The Draft Bill has a number of positive points, including the following:

(i): The authors have managed to keep the procedure simple.
(ii): A plan can be implemented outside a formal insolvency process.
(iii): The debtor remains in possession.
(iv): Court involvement remains relatively limited, and the procedure can be expected to be relatively swift and efficient (with the exception of the possibility of appeal in two instances).
(v): The Draft Bill offers a great degree of flexibility and room to design tailormade solutions. The procedure is “light touch” in nature and facilitates narrowly defined precision solutions. In particular, it does not require the involvement of more parties, does not create further legal consequences, and does not generate more publicity than is needed to implement the required solution.
(vi): The management of the company does not need the consent of shareholders to propose a plan.
(vii): Creditors also have the right to propose a plan.
(viii): The plan can bind all types of capital providers, including shareholders, preferential creditors and secured creditors.
(ix): Voting takes place in classes.
(x): The court has the power in certain circumstances to impose a plan over the objections of dissenting classes (cram-down).

(xi): The proceedings seek to be guided by economic reality as much as possible.