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Langkjaer, Line Herman --- "NATIONAL REPORT FOR DENMARK" [2019] ELECD 872; in Chuah, Jason; Vaccari, Eugenio (eds), "Executory Contracts in Insolvency Law" (Edward Elgar Publishing, 2019) 196

Book Title: Executory Contracts in Insolvency Law

Editor(s): Chuah, Jason; Vaccari, Eugenio

Publisher: Edward Elgar Publishing

Section: Chapter 10

Section Title: NATIONAL REPORT FOR DENMARK

Author(s): Langkjaer, Line Herman

Number of pages: 16

Abstract/Description:

Contracts are potentially the most valuable assets in a business. Not only can a contract potentially represent a direct monetary value, but it can also be of such importance to the debtor’s ongoing business that termination of the contract will lead to a decrease of the value of the business as such. To ensure the value in times of insolvency, a fairly complex legal framework regarding the treatment of contracts is set up in the Danish Bankruptcy Act. This chapter observes that the treatment of executory contracts in Danish insolvency law is based on a balance between the interest of the collective creditor interest and the interest of the counter party. Recent reforms appear to favour the interest of the estate by granting rights for the estate that the debtor did not have beforehand to maximize the recovery rate for the creditors and to make a rescue of a viable business possible.