Dutch Pre-Pack Alternatives On The Rise

Recently, there have been a number of successful "pre-pack" restructurings in the Netherlands. NautaDutilh's R&I team has been at the forefront of these interesting developments.

A pre-pack is the term used for the restructuring of a company through a transaction that is prepared as much as possible outside of formal insolvency proceedings, and whereby the enterprise survives but some or all of the company's debt is restructured. The aim of preparing the transaction in advance is to ensure the maximum preservation of value. Several structures can be distinguished.

The term is mostly used for the structure whereby the Dutch court is requested to appoint a so-called silent trustee, who participates in negotiations with the relevant stakeholders (usually management, senior creditors and the sponsors of the surviving entity) resulting in a transaction that is effectuated after the commencement of formal bankruptcy proceedings. Typically, the time between the opening