NEWS

The law of 20 December 2020 (published on 24 December 2020) creates temporary protection for Belgian enterprises facing insolvency as a consequence of the COVID-19 crisis.

The protection currently lasts until 31 January 2021 but this can be extended, and entails for qualifying enterprises that:

• they cannot be declared bankrupt or put into forced liquidation,
• creditors will not be able to levy attachment on movable assets and or enforce certain security interests on certain types of collateral, and;
• creditors will not be able to terminate existing agreements for reason of a payment default.

Importantly, the moratorium does not exempt directors of their potential liability. Directors should therefore seek legal advice on their director duties and associated liability risks.