Government measures in key jurisdictions 4th edition - Flipbook - Page 97
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?
97
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 caseby-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