What is surseance of payment (surseance van betaling) in the Netherlands?

Dutch term: Surseance van betaling | Legal basis: Faillissementswet

Surseance of payment (surseance van betaling) is a Dutch moratorium procedure regulated by the Bankruptcy Act. The debtor applies to the District Court for a temporary suspension of its obligation to pay unsecured creditors, with the aim of restructuring its debts and continuing its business.

The court appoints an administrator (bewindvoerder) who supervises the debtor's management during the surseance. The debtor retains control of its business but cannot make significant decisions without the administrator's consent. Secured creditors are not bound by the surseance and can continue enforcement. If the restructuring fails, the surseance is typically converted into a bankruptcy.

Why it matters for international businesses

In practice, surseance of payment is rarely used successfully for restructuring in the Netherlands. Most surseances are converted into bankruptcy within days or weeks. The Dutch WHOA procedure (court confirmation of a private restructuring plan) has become a more effective alternative for viable restructurings.