Debtor in possession
Debtor in possession is a concept from United States bankruptcy law whereby the debtor itself retains control over its assets and business during a reorganization proceeding.
In the US Chapter 11 procedure, the debtor in possession remains responsible for the day-to-day management of the business and the administration of assets, without the appointment of a trustee. This model facilitates efficient restructuring by preserving the debtor’s institutional knowledge and operational continuity.
The framework serves the interests of creditors and shareholders by avoiding the expense of an external administrator and enhancing the prospects of a successful turnaround. In practice, the debtor in possession is frequently subject to oversight by the court and creditors’ committees.
The Netherlands has no exact equivalent, but the concept is examined in the context of cross-border restructurings and may be relevant to the recognition of US judgments.
“During the Chapter 11 proceedings, the company acted as debtor in possession and was able to extend its supplier contracts independently.”
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