Government measures in key jurisdictions 5th edition - Flipbook - Page 100
Norway
Insolvency
Has the
government made
any changes
to insolvency
legislation?
The Norwegian Parliament passed the Temporary Restructuring Act
(nw: rekonstruksjonsloven), which came into force 11 May 2020. The law will remain in
effect until January 2022 and replaces the restructuring chapters of the Bankruptcy Act
(nw: konkursloven). The new rules will reduce the risk of unnecessary bankruptcies in
viable businesses that are now hit by acute revenue failure.
The most important changes in the new law are:
• No requirement for the debtor to be illiquid to open reconstruction negotiations.
• Creditors may, under certain conditions, request the opening of reconstruction.
• New rules to secure financing of the debtor's operations during the reconstruction
period.
• Better opportunities for conversion of debt to equity in connection with restructuring.
• New regulations which makes exceptions to the publics priority to claims regarding
taxes and VAT.
• The current requirements for equal treatment of creditors in a voluntary
reconstruction and the rules for minimum dividend in compulsory restructuring are
abolished.
• Changes to the rules on the adoption of the proposal for reconstruction.
It is expected that the law will become a permanent fixture of Norwegian bankruptcy law
even after January 2022.
Contractual
Issues
What measures
have been taken
to reinforce
contracts?
Property
Have any changes
been made to
the laws around
property, rent and
enforcement?
100
In general, there has been no change in rules governing contracts.
The fact that there is an epidemic/pandemic that has or may have negative consequences
is not in itself sufficient to qualify as force majeure. Whether the effects of the coronavirus
can be regarded as force majeure or a material adverse change in a particular contractual
relationship must be decided on a case-by-case basis.
No laws have been amended, however as mentioned above the government has put in
place several funding schemes which makes it more likely that tenants (both private and
professional) will be able to pay their rent.
Whether a tenant claim force majeure or otherwise demand a reduction in rent, payment
deferrals or renegotiation of other contract terms under the lease depends on a specific
interpretation of the relevant lease.
Government measures in key jurisdictions
