Unlike pledge holders and mortgage holders, 'ordinary' creditors generally have no special right to secure their position. With their unprotected claims, many trade creditors end up empty-handed, following a bankruptcy.

Suppliers regularly make use of a reservation of ownership, often embedded in their general terms and conditions. The right of recovery and retention rights also offer possibilities in this respect. However, although these rights may appear strong on paper, putting them into practice often proves more difficult. The processing, onward sale and sometimes even the storage of goods delivered subject to reservation of ownership often results in the nullification of the ownership right.

The attorneys in the Insolvency Law & Restructuring practice group at BANNING have built up considerable experience in their bankruptcy practice in assessing and settling the types of right referred to above. We can therefore offer you excellent advice on the optimum approach, also in the face of (prospective) bankruptcy proceedings.

In addition to the forms of supplier security already discussed, the law also offers recourse that allows individual creditors to take action against dubious transactions for example fraudulent behaviour (under civil law) and unlawful acts. Investigating dubious transactions and subsequent litigation are part of the day-to-day work of our practice group.