Coherent and consistent insolvency law

Dr Arpi Karapetian researches the relationships between different insolvency proceedings. When a company can no longer pay its debts, it is insolvent. There are different insolvency proceedings in Dutch law, some serving the same purpose and some serving different purposes.

The advantage of the existence of different procedures is that companies in financial difficulties can choose the one best suited to their financial situation. However, there are also disadvantages to this. Several stakeholders may pursue strategic interests by using the differences in the content of the procedures, which will be at odds with the goals of the legislator.

Arpi's research focuses on whether the content of various insolvency proceedings should be more streamlined. With colleagues from Groningen and Leiden, she will evaluate the Private Arrangement Homologation Act in the coming year. This law makes it possible for a company to have a reorganization agreement approved by the court, even if not all creditors and shareholders agree.

Arpi Karapetian is an associate professor at the Faculty of Law of the University of Groningen (UG). She is also an editor for the Journal of Insolvency Law and a Fellow at INSOLAD.

In the video below, Arpi talks more about her research.