{"id":1160,"date":"2020-04-17T18:37:02","date_gmt":"2020-04-17T16:37:02","guid":{"rendered":"http:\/\/haavind.local\/en\/2020\/04\/17\/modernisation-of-norwegian-restructuring-framework-amid-covid-19\/"},"modified":"2022-07-21T12:51:07","modified_gmt":"2022-07-21T12:51:07","slug":"modernisation-of-norwegian-restructuring-framework-amid-covid-19","status":"publish","type":"post","link":"https:\/\/haavind.stage01.dekodes.no\/en\/modernisation-of-norwegian-restructuring-framework-amid-covid-19\/","title":{"rendered":"Modernisation of Norwegian restructuring framework amid COVID-19"},"content":{"rendered":"\t<div class=\"template-post alignwide wp-block-dekode-hero\">\n\t\t<div class=\"hero__inner\">\n\t\t\t<div class=\"hero__inner_blocks\">\n\t\t\t\t<h1 class=\"wp-block-post-title\">Modernisation of Norwegian restructuring framework amid COVID-19<\/h1>\n\n<p>Modernisation of the Norwegian insolvency legislation has been long overdue. Current legislation lacks sufficient flexibility in terms of allowing for successful restructuring outcomes due to strict requirements for creditor consent and minimum dividends, combined with insufficient legal protection to secure financing for the business to continue and no debt to equity swap option.<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div><\/div>\n\t\t\t\t\t<div class=\"post-meta\">\n\t\t\t\t\t\t<span class=\"info-small\">17 April, 2020 \u00b7 3 min. reading time<\/span>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\n<div class=\"alignleft wp-block-haavind-byline\">\n\t\t\t\t<span class=\"author-tag\">Written by<\/span>\n\t\t\t\t<div class=\"authors\"><a href=\"https:\/\/haavind.stage01.dekodes.no\/en\/people\/ellen-schult-ulriksen\/\" class=\"t2-byline__author-link\">\n\t\t\t\t\t<div class=\"author-inner\">\n\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/haavind.stage01.dekodes.no\/content\/uploads\/sites\/2\/2016\/04\/Ellen-Schult-Ulriksen-engelsk-233x300.jpg\" \/>\n\t\t\t\t\t\t<div>\n\t\t\t\t\t\t<span class=\"name\">Ellen Schult Ulriksen<\/span>\n\t\t\t\t\t\t<span>Partner<\/span>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/a><\/div>\n\t\t\t\t<div class=\"topics\">\n\t\t\t\t<span><\/span>\n\t\t\t\t<div><\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n<p>Modernisation of the Norwegian insolvency legislation has been long overdue. Current legislation lacks sufficient flexibility in terms of allowing for successful restructuring outcomes due to strict requirements for creditor consent and minimum dividends, combined with insufficient legal protection to secure financing for the business to continue and no debt to equity swap option.<\/p>\n\n\n<p>The outbreak of the COVID-19 virus has however prompted the Government to propose new temporary restructuring legislation to mitigate the enormous economic impact. The main objective is to avoid unnecessary bankruptcies in otherwise viable businesses by providing more flexibility and more \u201ctools\u201d in negotiations with creditors:<\/p>\n\n\n\n<ul><li>Negotiations can be initiated at an earlier stage and it is no longer a requirement that the debtor is illiquid (unable to pay debt as it is due) or insufficient (meaning that the assets are less worth than the debt.)<\/li><li>A restructuring plan can be approved with the consent of a simple majority of the creditors. Likewise, there will be no minimum dividend requirements.<\/li><li>The proposal allows for a sale of the business and allows for conversion of debt to equity with a simple majority decision from the General Meeting.<\/li><li>The proposal allows for temporary exemptions from the ranking order of tax and VAT claims as priority status claims. The option is limited to situations where a temporary exemption is an appropriate measure to remedy the adverse consequences of the outbreak of covid-19.<\/li><li>Liquidity is crucial in order to secure continued operations and to finance the proceedings. The proposal allows for such funding with super priority provided that the position of existing secured lenders is not significantly weakened. Such funding must be approved by the court appointed trustee and may be challenged.<\/li><li>Commencement of proceedings implies an automatic stay on enforcement and bankruptcy proceeding for as long as the proceedings are ongoing.<\/li><\/ul>\n\n\n\n<p>If you have any questions, please contact our insolvency and restructuring team.<\/p>\n\n\n<div class=\"wp-block-image\"><figure class=\"alignleft\"><img loading=\"lazy\" decoding=\"async\" width=\"1254\" height=\"836\" src=\"https:\/\/haavind.stage01.dekodes.no\/content\/uploads\/sites\/2\/2022\/06\/Coronavirus-economic-impact.jpg\" alt=\"\" class=\"wp-image-1932\" title=\"Global epidemics and economic impact\" srcset=\"https:\/\/haavind.stage01.dekodes.no\/content\/uploads\/sites\/2\/2022\/06\/Coronavirus-economic-impact.jpg 1254w, https:\/\/haavind.stage01.dekodes.no\/content\/uploads\/sites\/2\/2022\/06\/Coronavirus-economic-impact-300x200.jpg 300w, https:\/\/haavind.stage01.dekodes.no\/content\/uploads\/sites\/2\/2022\/06\/Coronavirus-economic-impact-1024x683.jpg 1024w, https:\/\/haavind.stage01.dekodes.no\/content\/uploads\/sites\/2\/2022\/06\/Coronavirus-economic-impact-768x512.jpg 768w\" sizes=\"(max-width: 1254px) 100vw, 1254px\" \/><figcaption>Global epidemics and economic impact<\/figcaption><\/figure><\/div>\n\n\t<div \n\t\tclass=\"template-post alignwide wp-block-haavind-block-contact-people\" id=\"contact\"\t\t>\n\t\t<h2 class=\"post-featured-title\">Contact us<\/h2>\n\t\t<div class=\"block-contact-people-list\">\n\t\t\t<div class=\"t2-featured-content-layout alignwide wp-block-t2-featured-content-layout\"><div class=\"t2-featured-single-post t2-featured-content is-post-type-person sector-aviation sector-finance speciality-banking-and-finance speciality-insolvens-restrukturering role-partner wp-block-t2-featured-single-post\">\n<div class=\"wp-block-group alignfull post-featured-image is-layout-flow wp-block-group-is-layout-flow\">\n\t<a class=\"t2-post-link wp-block-t2-post-link\" href=\"https:\/\/haavind.stage01.dekodes.no\/en\/people\/ellen-schult-ulriksen\/\">\n\t<figure style=\"--t2-focal-point: 50% 50%\" class=\"t2-post-featured-image has-image-ratio-3-4 wp-block-t2-post-featured-image\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"1030\" src=\"https:\/\/haavind.stage01.dekodes.no\/content\/uploads\/sites\/2\/2016\/04\/Ellen-Schult-Ulriksen-engelsk.jpg\" class=\"attachment-large size-large wp-post-image\" alt=\"\" \/><\/figure>\n\t<\/a>\n<\/div>\n\n\n<div class=\"wp-block-group alignfull post-featured-content is-layout-flow wp-block-group-is-layout-flow\">\n\t<a class=\"t2-post-link wp-block-t2-post-link\" href=\"https:\/\/haavind.stage01.dekodes.no\/en\/people\/ellen-schult-ulriksen\/\"><h2 class=\"t2-post-title wp-block-t2-post-title\">Ellen Schult Ulriksen<\/h2><\/a>\n\t<div class=\"taxonomy-role wp-block-post-terms\"><a href=\"https:\/\/haavind.stage01.dekodes.no\/en\/role\/partner\/\" rel=\"tag\">Partner<\/a><\/div>\n\t<div class=\"card-info wp-block-t2-people-meta\"><div class=\"card-info__post-meta meta-key-people_email\"><a href=\"mailto:e.ulriksen@haavind.stage01.dekodes.no\">e.ulriksen@haavind.stage01.dekodes.no<\/a><\/div><div class=\"card-info__post-meta meta-key-people_phone\"><a href=\"tel:+47 975 05 432\">+47 975 05 432<\/a><\/div><\/div>\n<\/div>\n\n<\/div>\n<div class=\"t2-featured-single-post t2-featured-content is-post-type-person sector-aviation sector-finance sector-private-equity speciality-banking-and-finance speciality-insolvens-restrukturering role-partner wp-block-t2-featured-single-post\">\n<div class=\"wp-block-group alignfull post-featured-image is-layout-flow wp-block-group-is-layout-flow\">\n\t<a class=\"t2-post-link wp-block-t2-post-link\" href=\"https:\/\/haavind.stage01.dekodes.no\/en\/people\/hans-christian-donjem\/\">\n\t<figure style=\"--t2-focal-point: 50% 50%\" class=\"t2-post-featured-image has-image-ratio-3-4 wp-block-t2-post-featured-image\"><img loading=\"lazy\" decoding=\"async\" width=\"795\" height=\"1024\" src=\"https:\/\/haavind.stage01.dekodes.no\/content\/uploads\/sites\/2\/2016\/04\/Hans-Christian-Donjem-795x1024.jpg\" class=\"attachment-large size-large wp-post-image\" alt=\"\" \/><\/figure>\n\t<\/a>\n<\/div>\n\n\n<div class=\"wp-block-group alignfull post-featured-content is-layout-flow wp-block-group-is-layout-flow\">\n\t<a class=\"t2-post-link wp-block-t2-post-link\" href=\"https:\/\/haavind.stage01.dekodes.no\/en\/people\/hans-christian-donjem\/\"><h2 class=\"t2-post-title wp-block-t2-post-title\">Hans-Christian Donjem<\/h2><\/a>\n\t<div class=\"taxonomy-role wp-block-post-terms\"><a href=\"https:\/\/haavind.stage01.dekodes.no\/en\/role\/partner\/\" rel=\"tag\">Partner<\/a><\/div>\n\t<div class=\"card-info wp-block-t2-people-meta\"><div class=\"card-info__post-meta meta-key-people_email\"><a href=\"mailto:hc.donjem@haavind.stage01.dekodes.no\">hc.donjem@haavind.stage01.dekodes.no<\/a><\/div><div class=\"card-info__post-meta meta-key-people_phone\"><a href=\"tel:+47 950 54 868\">+47 950 54 868<\/a><\/div><\/div>\n<\/div>\n\n<\/div><\/div>\t\t<\/div>\n\t\t\t<\/div>\n\t","protected":false},"excerpt":{"rendered":"<p>Modernisation of the Norwegian insolvency legislation has been long overdue. Current legislation lacks sufficient flexibility in terms of allowing for successful restructuring outcomes due to strict requirements for creditor consent and minimum dividends, combined with insufficient legal protection to secure financing for the business to continue and no debt to equity swap option.<\/p>\n","protected":false},"author":0,"featured_media":1932,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"sector":[],"speciality":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.2 (Yoast SEO v24.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Modernisation of Norwegian restructuring framework amid COVID-19 - Haavind EN<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/haavind.stage01.dekodes.no\/en\/modernisation-of-norwegian-restructuring-framework-amid-covid-19\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Modernisation of Norwegian restructuring framework amid COVID-19\" \/>\n<meta property=\"og:description\" content=\"Modernisation of the Norwegian insolvency legislation has been long overdue. Current legislation lacks sufficient flexibility in terms of allowing for successful restructuring outcomes due to strict requirements for creditor consent and minimum dividends, combined with insufficient legal protection to secure financing for the business to continue and no debt to equity swap option.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/haavind.stage01.dekodes.no\/en\/modernisation-of-norwegian-restructuring-framework-amid-covid-19\/\" \/>\n<meta property=\"og:site_name\" content=\"Haavind EN\" \/>\n<meta property=\"article:published_time\" content=\"2020-04-17T16:37:02+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-07-21T12:51:07+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/haavind.stage01.dekodes.no\/content\/uploads\/sites\/2\/2022\/06\/Coronavirus-economic-impact.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1254\" \/>\n\t<meta property=\"og:image:height\" content=\"836\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/haavind.stage01.dekodes.no\/en\/modernisation-of-norwegian-restructuring-framework-amid-covid-19\/\",\"url\":\"https:\/\/haavind.stage01.dekodes.no\/en\/modernisation-of-norwegian-restructuring-framework-amid-covid-19\/\",\"name\":\"Modernisation of Norwegian restructuring framework amid COVID-19 - Haavind EN\",\"isPartOf\":{\"@id\":\"https:\/\/haavind.stage01.dekodes.no\/en\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/haavind.stage01.dekodes.no\/en\/modernisation-of-norwegian-restructuring-framework-amid-covid-19\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/haavind.stage01.dekodes.no\/en\/modernisation-of-norwegian-restructuring-framework-amid-covid-19\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/haavind.stage01.dekodes.no\/content\/uploads\/sites\/2\/2022\/06\/Coronavirus-economic-impact.jpg\",\"datePublished\":\"2020-04-17T16:37:02+00:00\",\"dateModified\":\"2022-07-21T12:51:07+00:00\",\"author\":{\"@id\":\"\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/haavind.stage01.dekodes.no\/en\/modernisation-of-norwegian-restructuring-framework-amid-covid-19\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/haavind.stage01.dekodes.no\/en\/modernisation-of-norwegian-restructuring-framework-amid-covid-19\/#primaryimage\",\"url\":\"https:\/\/haavind.stage01.dekodes.no\/content\/uploads\/sites\/2\/2022\/06\/Coronavirus-economic-impact.jpg\",\"contentUrl\":\"https:\/\/haavind.stage01.dekodes.no\/content\/uploads\/sites\/2\/2022\/06\/Coronavirus-economic-impact.jpg\",\"width\":1254,\"height\":836,\"caption\":\"Global epidemics and economic impact\"},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/haavind.stage01.dekodes.no\/en\/#website\",\"url\":\"https:\/\/haavind.stage01.dekodes.no\/en\/\",\"name\":\"Haavind EN\",\"description\":\"-\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/haavind.stage01.dekodes.no\/en\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Modernisation of Norwegian restructuring framework amid COVID-19 - Haavind EN","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/haavind.stage01.dekodes.no\/en\/modernisation-of-norwegian-restructuring-framework-amid-covid-19\/","og_locale":"en_US","og_type":"article","og_title":"Modernisation of Norwegian restructuring framework amid COVID-19","og_description":"Modernisation of the Norwegian insolvency legislation has been long overdue. 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