Reorganisatiewaarde
reorganisation value
The reorganization value is the estimated proceeds of an enterprise upon continuation in restructuring, as opposed to the lower liquidation value upon a sale of assets.
The reorganization value is a concept in Dutch insolvency law that denotes the value of an enterprise when continued as a going concern in reorganized form. It stands in contrast to liquidation value and serves to assess the potential recovery for creditors in a restructuring rather than a forced sale.
This value is relevant in proceedings such as suspension of payments, bankruptcy or composition procedures under the WHOA, since a higher reorganization value frequently yields a greater distribution to creditors. Courts and trustees rely on it to determine whether a reorganization plan is feasible and more advantageous than liquidation.
In practice, the reorganization value is established by independent experts on the basis of projected cash flows and market outlook, and it informs negotiations between the enterprise and its creditors.
“The trustee concluded that the reorganization value was substantially higher than the liquidation value, making a composition with the creditors preferable.”
Need legal advice?
Schedule a free consultation with one of our specialists