The law on the judicial reorganization procedure (PRJ), which allows companies in difficulty to agree with their creditors on a rescue plan, will be reformed as the bankruptcy moratorium expires on January 31, reports L’Echo on Friday, citing SME Minister David Clarinval (MR).
The moratorium has protected businesses during the two waves of the coronavirus but cannot be extended indefinitely. However, no less than 84,000 businesses that were healthy before the pandemic are now in serious difficulty.
Under the leadership of Minister of SMEs David Clarinval (MR) and Minister of Justice Vincent Van Quickenborne (Open Vld), the government will relax the PRJ.
Among the three changes envisaged in the reform is easier access for SMEs. “The current law provides that 11 documents must be provided at the outset, including a financial plan, up-to-date balance sheets for the past three years or a list of creditors, which requires significant administrative capacity and leads to automatically ejecting 90% of SMEs, or even more, ”explains David Clarinval.
The reform also provides for the possibility of resorting to mediation to negotiate with creditors without the procedure being published in the Belgian Official Gazette. Once the agreement is tied, it can then be taken to court and approved quickly.
Finally, the tax exemption will be extended. “Today, only the PRJs obtained by court order benefit from a tax advantage, not the PRJs by amicable agreement. We are going to change that”, announces the Minister Clarinval.
The Minister of SMEs hopes that the text will pass the course of Parliament within 15 days.