25 July 2018
With the two recent appeal decisions (Bogra, Amsterdam Court of Appeal 10 July 2018 and Heiploeg, Arnhem-Leeuwarden Court of Appeal 17 July 2018) it is clear: the European Court of Justice Smallsteps decision of June last year did not mark the end of the pre-pack.
Depending on the facts and circumstances of the case a pre-pack (a restructuring through a bankruptcy procedure where the restructuring plan is agreed before bakruptcy) is still possible without transfer of indertaking rules being applicable.
If the pre-pack is not aimed at continuity of the business but rather at liquidation and safeguarding the value of the undertaking, the employees are not automatically entitled to continued employment with the new company.
For more information, please contact Els de Wind.