{"id":1267,"date":"2015-12-07T12:55:56","date_gmt":"2015-12-07T11:55:56","guid":{"rendered":"http:\/\/haavind.local\/en\/2015\/12\/07\/proposal-for-new-insolvency-legislation-better-adjusted-to-current-restructuring-needs\/"},"modified":"2022-07-21T12:51:39","modified_gmt":"2022-07-21T12:51:39","slug":"proposal-for-new-insolvency-legislation-better-adjusted-to-current-restructuring-needs","status":"publish","type":"post","link":"https:\/\/haavind.stage01.dekodes.no\/en\/proposal-for-new-insolvency-legislation-better-adjusted-to-current-restructuring-needs\/","title":{"rendered":"Proposal for new insolvency legislation better adjusted to current restructuring needs"},"content":{"rendered":"\t
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Proposal for new insolvency legislation better adjusted to current restructuring needs<\/h1>\n\n

The decline in oil prices has caused financial challenges and reduced activity levels particularly in the offshore industry. Many companies have implemented down-sizing measures and others are already being forced to go into financial restructuring.
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\r\nBanks and other lenders are often accepting temporary waivers or change of covenants under the loan agreements instead of accelerating the loans. This will, however, not solve the underlying challenges if oil prices remain at current levels.<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t

<\/div>\n\t\t\t\t\t
\n\t\t\t\t\t\t07 December, 2015 \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
\n\t\t\t\tWritten by<\/span>\n\t\t\t\t
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\n\t\t\t\t\t\t\n\t\t\t\t\t\t
\n\t\t\t\t\t\tEllen Schult Ulriksen<\/span>\n\t\t\t\t\t\tPartner<\/span>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/a>\n\t\t\t\t\t
\n\t\t\t\t\t\t\n\t\t\t\t\t\t
\n\t\t\t\t\t\tCornelius Sogn Ness<\/span>\n\t\t\t\t\t\tPartner<\/span>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/a>\n\t\t\t\t\t
\n\t\t\t\t\t\t\n\t\t\t\t\t\t
\n\t\t\t\t\t\tPreben Brecke<\/span>\n\t\t\t\t\t\tManaging 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
\n\t\t\t\tTopics<\/span>\n\t\t\t\t
Insolvency and restructuring<\/span><\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n

The decline in oil prices has caused financial challenges and reduced activity levels particularly in the offshore industry. Many companies have implemented down-sizing measures and others are already being forced to go into financial restructuring.
\r\n
\r\nBanks and other lenders are often accepting temporary waivers or change of covenants under the loan agreements instead of accelerating the loans. This will, however, not solve the underlying challenges if oil prices remain at current levels.<\/p>\n\n\n

With the expected challenges ahead, the Ministry of Justice and Public Security has mandated Judge Leif Villars-Dahl of the Oslo Bankruptcy Court to review current legislation and propose potential adjustments and amendments. The current legislation has proven rigid and strict with regard to requirements as to minimum dividends, voting requirements and ranking of claims.<\/p>\n\n\n\n

The current legislation is also insufficiently flexible with respect to alternative funding\/liquidity financing during debt negotiations. The majority of \u201cwork outs\u201d and restructurings are therefore carried out outside of the court system \u2013 on a consensual basis. Although no substantial reform of Norwegian insolvency legislation is expected, we expect more flexibility due to contemplated adjustments as to financing inspired by US Chapter 11 as well as voting and dividend requirements. The report and proposal is expected on 1 March 2016.<\/p>\n\n\n\n

Regardless of the outcome, an important lesson from previous restructuring processes is that it is important to take action at an early stage.<\/p>\n\n\n\n

Haavind\u2019s restructuring and insolvency experts regularly assist companies, mortgagees, bondholders, suppliers, shareholders, customers or other creditors in distressed situations. Our experts also act as court appointed trustees in bankruptcy and our advice is therefore not only solution-oriented and pragmatic, but also based on significant experience.<\/p>\n\n\n\n

Our assistance includes:<\/strong><\/p>\n\n\n\n

  • Assessment of debtor and creditor positions<\/li>
  • Assessment of security and relevant stakeholder positions<\/li>
  • Downsizing measures<\/li>
  • Restructuring of companies and debt<\/li>
  • Advising on realistic, feasible and relevant courses of action<\/li>
  • Advising on board liability issues<\/li>
  • Transactions with distressed companies prior to or after bankruptcy\/debt negotiations<\/li>
  • Handling transactions and claims in regards to bankruptcy estates<\/li>
  • Preparing and establishing new security<\/li>
  • Cross-border insolvency issues<\/li>
  • Enforcement of security<\/li>
  • Available insolvency protection in foreign jurisdictions (Chapter 11 etc.)<\/li>
  • Dispute resolution<\/li><\/ul>\n\n\n\n

    We collaborate closely with our network of international law firms to ensure our client\u2019s interest in cross border matters.<\/p>\n","protected":false},"excerpt":{"rendered":"

    The decline in oil prices has caused financial challenges and reduced activity levels particularly in the offshore industry. Many companies have implemented down-sizing measures and others are already being forced to go into financial restructuring. <\/p>\n

    Banks and other lenders are often accepting temporary waivers or change of covenants under the loan agreements instead of accelerating the loans. This will, however, not solve the underlying challenges if oil prices remain at current levels.<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"sector":[],"speciality":[23],"acf":[],"yoast_head":"\nProposal for new insolvency legislation better adjusted to current restructuring needs - 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\/proposal-for-new-insolvency-legislation-better-adjusted-to-current-restructuring-needs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Proposal for new insolvency legislation better adjusted to current restructuring needs\" \/>\n<meta property=\"og:description\" content=\"The decline in oil prices has caused financial challenges and reduced activity levels particularly in the offshore industry. 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