If a debtor is unable to pay its debts as they fall due, or will shortly become unable to do so, it may apply for company reorganisation, which grants undertakings with financial difficulties respite to take measures to improve their business and negotiate a judicial composition with creditors. The Wage Guarantee Act provides for a loan on a short-term basis that improves the debtor's possibilities to reorganise the business.
The Supreme Court recently clarified the interpretation of the rules on set-off in bankruptcy. The case concerned a creditor's right to offset a claim against the bankruptcy estate's claim of payment. The triable issue was whether the settlement agreement was to be considered as a substituted contract, meaning that the bankruptcy estate's claim had occurred after the date of bankruptcy.