At Kirk Larsen & Ascanius we are experts in in-court restructuring. We have strong expertise and practical experience in utilising the tools offered by the Danish Bankruptcy Act for restructuring in the forms of business transfer and/or compulsory composition/extension of payment.
The Danish Parliament’s March 2021 amendments to the provisions of the Bankruptcy Act’ on restructuring (L65) have greatly improved the possibilities of in-court restructuring of viable – but currently challenged – businesses.
The amended Act provides useful new tools for exploring the possibilities of completing a restructuring without bankruptcy being the automatic end result. It has also become possible to perform a business transfer before considering the proposed restructuring. A transfer of employees as part of a business transfer during restructuring can be treated as it would be in a bankruptcy. In other words, the transferee takes over employee liabilities only on the date of commencement of the restructuring.