MORATORIUM OF PAYMENTS UNDER THE LAWS OF THE NETHERLANDS ANTILLES AND ARUBA
Only the debtor may ask for a moratorium
A moratorium of payments (surseance van betaling) is a court-ordered general suspension of a debtor’s obligations; its purpose is to avoid the debtor’s bankruptcy in the interest of both the debtor and his creditors. The moratorium is to a certain extent comparable with the US Chapter 11.
A moratorium is available only at the request of the debtor, on the ground that he will be unable to continue payments. The purpose of a moratorium is to give the debtor an opportunity for recovery; it may lead to a normal resumption of payments or to a settlement.
In many cases, however, a moratorium is followed by bankruptcy. During the moratorium unsecured creditors cannot enforce their rights. However, secured creditors (e.g. pledgors) can exercise their rights despite the moratorium.
The administrator (bewindvoerder) in a moratorium has less powers than a liquidator in bankruptcy. The former can only act with the cooperation of the debtor, i.e. the management in the case of a company and vice versa. Under the US Chapter 11, the management of a company continues to run the day-to-day business operations but all significant business decisions must be approved by a bankruptcy court.
Karel Frielink
Attorney (Lawyer) / Partner
