Surseance van betaling
Suspension of payments
Suspension of payments is a statutory regime under which a company is temporarily protected from its creditors to facilitate a restart or restructuring.
A suspension of payments is a procedure under Dutch insolvency law whereby the court grants an enterprise a moratorium. This means that the debtor cannot be compelled to make payment to its creditors for a specified period.
It is relevant because it affords the enterprise the opportunity to restructure and potentially avert bankruptcy. During the moratorium, an administrator is appointed who, jointly with the debtor, manages the estate.
In practice, a suspension of payments is frequently sought when a company is in financial distress but remains viable. It provides a breathing space in which to negotiate a composition with creditors.
“The company has applied for suspension of payments in order to restructure its debts.”
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