The COVID-19 outbreak has an unprecedented impact. On public health, society and also economically. It affects many companies at its core. The scale of the consequences cannot yet be grasped, while the impact is immediate and tangible. This leads to uncertain times. What measures can we take and what responsibilities play an important role in this?
The R&P Corona knowledge site keeps you up to date with current developments and provides guidance on how to constructively limit the consequences of the virus.
On this page we will keep you informed of current developments such as the implementation or modification of emergency measures. We also provide you with other practical information as well.
Finance Update: developments in the Dutch debt financing market
The COVID-19 health crisis and its response measures taken by the government, businesses and consumers result in financial pressure for many companies. In the past weeks, we have seen a number of developments in the Dutch debt financing market which we would like to highlight to you. Read more about:
- Interest in GO guarantees
- Increased dialogue between lenders and borrowers
- Payment holiday instituted by banks for companies
- Lenders postponing transactions
- Equity investments swapped for convertible loans
- Regional support to start-ups and scale-ups
- Urgent new Dutch scheme law
- Government reinsurance for credit insurances
- Debt buybacks
- Financial covenants
- Payment holiday consumer mortgage borrowers
Temporary Emergency Bridging Measure to Preserve Employment elaborated
The emergency portal of the Employee Insurance Agency UWV is open. The applications for the payroll subsidy can be filed here.
Read on for a summary of the key features of the NOW scheme.
You can also visit rutgersposch.nl/corona (Dutch) to stay informed about the latest developments.
M&A Update: developments and discussions seen in recent transactions
In addition to simple, mutually agreed postponements of deals the last few weeks we have seen the following developments and discussions in transactions that have not yet been signed, but for which parties have entered into (non-binding) letter of intents, term sheets or heads of agreements:
- Due diligence
- Purchase price
- Locked box versus completion accounts
- Material adverse change (MAC)
- Financing condition
- Vendor loans
- Convertible loans
The corona bailout package
In order to support businesses, employees and self-employed workers by preserving as many jobs as possible and mitigating the economic impact of the corona-crisis to the maximum extent, the Dutch government presented the impressive Emergency package to protect jobs and the economy (Dutch). This emergency package will be in place for at least three months. The government will keep a close eye on the developments and modify the measures as and when necessary.
This article explains the most important of the measures. The details of many of them have yet to be given shape. Rutgers & Posch’s Corona Knowledge Team will keep you abreast of the latest developments, such as the details of or changes to the emergency measures.