Covid-19 | Royal Decree on temporary protection measures for enterprises
On 24 April 2020, the Belgian Federal Government has adopted a Royal Decree concerning the temporary suspension, for the benefit of enterprises, of enforcement measures and other measures during the Covid-19 crisis (the Decree).
In summary, the Decree grants an automatic moratorium from 24 April 2020 until 17 May 2020 (subject to prolongation), during which enterprises are protected against (i) bankruptcy and judicial dissolution, (ii) attachments and enforcement measures; and (iii) termination of existing contracts due to non-payment. In addition, new credit lines provided during the moratorium and the security interests or acts that are implemented in execution of such new credit lines, will be protected against subsequent bankruptcy.
With decades of expertise in strategic negotiations for companies facing financial difficulties and in judicial reorganisations, our M&A and restructuring team will be happy to assist you in identifying solutions.
For more detailed information, please see our memo attached.