EMERGENCY MEASURES UNDER THE LAWS OF THE NETHERLANDS ANTILLES
The moratorium rules are not applicable to banks and insurance companies
The Netherlands Antilles Bankruptcy Decree 1931 is applicable to all corporations, associations, foundations, partnerships and individuals; insurance companies and banks (including Netherlands Antilles Branches of foreign banks) not excluded.
However, the provisions in respect of moratorium (surséance van betaling) are not applicable in respect of insurance companies and credit institutions. Instead, the Insurance Supervision Ordinance and the Banking Supervision Ordinance provide that the Netherlands Antilles Central Bank (Bank van de Nederlandse Antillen) may ask a Netherlands Antilles court for the application of so-called emergency measures to respectively an insurance company or a registered credit institution (including the licensed local branches of a foreign insurance company or credit institution).
If the court decides to apply the emergency measures, the Central Bank assumes as administrator the role of the management of the insurance company or credit institution, to restore order to, or to liquidate (usually), the business of the insurance company or the credit institution. The emergency measures have an advantage compared with moratorium in that the Central Bank as administrator does not require the cooperation of the insurance company’s or the credit institution’s management (nor of their supervisory bodies) in taking decisions which it considers in the interest of creditors.
In applying the emergency measures, the court authorizes the Central Bank to transfer in whole or in part the insurance company’s or the credit institution’s business to another institution or to wind up such business. Afterwards, a bankruptcy order can still be issued.
Karel Frielink
Attorney (Lawyer) / Partner
