Government measures in key jurisdictions 5th edition - Flipbook - Page 44
Denmark
Insolvency
•
On 21 October 2020, the Danish government proposed a bill amending the Danish
Bankruptcy Act. The bill aims to improve the ability for companies to continue
their business instead of being declared bankrupt, e.g. in the case of temporary
financial difficulties, while at the same time protecting the legal position of the
creditors. The draft bill is being proposed due to Covid-19 but will also apply to
companies that are facing financial difficulties for other reasons that Covid-19,
and the bill will also apply after Covid-19. The bill is expected to enter into force in
March 2021.
•
The Danish government has not implemented any specific measures to reinforce
contracts.
•
However, part of the legislation adopted by the Danish government, as a
consequence of Covid-19, directly or indirectly affects contracts. As an example,
the Danish government has implemented two Executive Orders under which the
Danish Medicines Agency has a right to order Danish manufacturers, importers and
distributors to supply certain types of medical devices, personal protective equipment
and disinfectants to regions and municipalities against payment from the region or
the municipality. As the Danish Medicines Agency has a right to decide the terms of
payment and delivery, this may potentially have an impact on the companies’ ability to
enter into other contracts or fulfil existing contracts. Similarly, the Danish government
has implemented an Executive Order which gives the Danish Medicines Agency
authority to i.e. decide that prices on medicine may not rise. The Executive Orders will
remain in force until 28 February 2021.
•
The Danish government has not introduced any changes to the laws around property,
rent and enforcement
•
However, the Danish government had implemented a temporary ban on the opening
of shopping malls, department stores, arcades, bazaars etc. and places where food,
beverages or tobacco are served. These bans raised a number of issues for both
lessors and lessees related to business leaseholds in the retail, catering and tourist
industries, i.e. whether the government actions constitute force majeure. It is likely
that the government actions can constitute force majeure in relation to some of both
lessor’s and lessee’s obligations under a lease agreement as (i) the fulfillment of
terms of the lease agreement can be impossible due to the extraordinary
situation created by the outbreak of Covid-19 virus and the bans imposed by the
government, and (ii) the extraordinary situation – at least for the lease agreements
drafted prior to the outbreak of Covid-19 virus – must be assumed to have been
unpredictable for the parties.
•
In December 2020, a new temporary ban on the opening of shopping malls,
department stores, arcades, bazaars etc. and places where food, beverages and
tobacco are served was reintroduced. These restrictions are still in force and will
remain in force until 28 February 2021 unless further prolonged.
Has the
government made
any changes
to insolvency
legislation?
Contractual
Issues
What measures
have been taken
to reinforce
contracts?
Property
Have any changes
been made to
the laws around
property, rent and
enforcement?
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Government measures in key jurisdictions
