BELGIUM Law and Practice Contributed by: Wim Aerts, Dorothée Vermeiren and Stijn Van Walleghem, Clifford Chance
7.10 Expedited Restructurings Belgian law allows, to some extent, the pre- arrangement/pre-packaging of a restructuring process by using a private procedure (without publication), or opting for the private/silent prep - aration of subsequent bankruptcy proceedings involving the pre-packaged transfer of the busi - ness. In order to be allowed to follow such pro - ceedings, the company must demonstrate that the confidential pre-bankruptcy proceedings will (i) facilitate the liquidation of the company while achieving the highest possible distribution to the joint creditors, and (ii) preserve employment to the extent possible. 8. Case Studies and Practical Insights 8.1 Notable Case Studies There are not many notable cases which are publicly known and merit reference in this con - text. 8.2 Lessons Learned
companies, the cram-down can be achieved by a majority vote of the creditors (in headcount and amount of claims), subject to certain excep - tions (eg, for secured and state creditors and claims from employees). For larger companies, the approval of the plan and cram-down requires the approval of a majority in each class (in value). There is a double test to cram-down dissenting classes of creditors. First, the “best-interest-of- creditors test” applies, meaning that no dissent - ing creditor can be manifestly worse off under the reorganisation plan than in a liquidation scenario. Second, a “cross-class cram-down” to impose the plan on non-consenting classes is only possible if a majority of the classes of parties affected by the plan approve the plan (including a class deemed to be in the money in a bankruptcy) and the amended absolute priority rule is respected. Note that a cram-down can also be achieved in practice through insolvency proceedings for the transfer of business under court supervision. In this scenario, the assets of the debtor will be sold, and the proceeds distributed to the credi - tors, after which the debtor will be liquidated. While certain secured creditors can impose con - ditions for the sale, they will not be able to block the transfer from going ahead.
See 8.1 Notable Case Studies . 8.3 Application of Insights See 8.1 Notable Case Studies .
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