2 January 2014

Compulsory composition in insolvency law: Freedom with strings attached?

After the end of the creditors’ meeting in the bankruptcy of Lehman Brothers Treasury Co. B.V., the composition plan was adopted by a large majority and approved by the Amsterdam District Court.

The composition and the court’s approval have been criticised. This criticism was directed at the liquidation, which will fall outside the scope of the Dutch Bankruptcy Act as a result of the composition and will no longer be subject to supervision by a bankruptcy judge.  But there were also reservations about the composition imposing obligations on creditors, in this case an exoneration of bankruptcy trustees and affiliated parties.

This publication by Ruud Hermans and  Reinout Vriesendorp is part of XL-40, a “liber amicorum” presented to Mart Franken.

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To read the article click here. This  article is available in Dutch only.