Law

Three pieces of practical advice for a successful reconstruction process

By Lars Berg Dueholm and Lars Møgelvang Hansen, Lou Advokatfirma

LOU Law firm has one of the highest rates amongst Danish insolvency law firms in the area of successfully concluded reconstructions. Based on this, three pieces of practical advice can be given to lawyers trying to reconstruct an insolvent business.

The first is to include lawyers, accountants and other advisers in the process at the earliest possible stage. By doing so, the ability exists to work out realistic budgets for the healthy part of the business and to make sure that there are sufficient funds for the reconstruction process itself.

The second piece of advice is to maintain a high level of openness towards the creditors. If the reconstruction process is to be successful, it is of the utmost importance that the trust between the advisors carrying out the reconstruction and the main creditors is maintained, and even strengthened during the process.

The third is to work out a credible and well-based business plan and realistic budgets for the future business areas. It is crucial to be able to prove that the future business of the insolvent company is healthy and, if necessary, to have the company divided into a healthy and unhealthy part at the earliest.

These three areas of advice are just as important as they are self-evident. Work thoroughly, at the very earliest possibility, and ensure that those who rely on this work are informed of any action on an ongoing basis.


Lars Berg Dueholm, Partner
Lou Advokatfirma, Kopenhagen, Denmark
T: +45 70 300 500
E: This email address is being protected from spambots. You need JavaScript enabled to view it.; W: www.louadvokater.dk

 

 

 


Lars Møgelvang Hansen, Partner
Lou Advokatfirma, Kopenhagen, Denmark
T: +45 70 300 500
E: This email address is being protected from spambots. You need JavaScript enabled to view it.; W: www.louadvokater.dk

 

 

 

 


Lou Law Firm is the result of a merger between hansen|partnere and Lou & Partnere. The new company has more than 50 employees, including over 20 lawyers. Lou Law Firm has offices in Copenhagen, Aarhus and Randers, Denmark.

Attorney-at-law and partner, Lars Møgelvang Hansen, has more than ten years’ experience with insolvency cases and has recently handled a number of successful reconstructions of small and medium-sized businesses.
 
Attorney-at-law and partner, Lars Berg Dueholm, leads the Lou Law Firm’s Copenhagen branch. He also has more than ten years’ experience with insolvency law, including some of the largest bankruptcy estates during the economic crisis.


published: October 2014

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