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VanMoof Explores Sale Under Court Protection Because It Can't Pay Bills (theverge.com) 18

swinferno shares a report: VanMoof -- the Amsterdam-based e-bike maker that once bragged about being the "most funded e-bike company in the world" -- has turned to the Dutch courts for legal protection in order to give the company time to pay its bills. The company is exploring all possible routes out of its debt, including a possible sale, according to a source familiar with the matter. All options are on the table as the company looks for a path to survival. The company is also temporarily closing its brand stores. Amid rumors of trouble, angry customers descended on VanMoof's flagship Amsterdam store and service center (and former global HQ) on Wednesday to claim their bikes that had been brought in for service weeks ago.

The closures are meant to safeguard VanMoof employees. The so-called preliminary "surseance van betaling" (which translates to "suspension of payment") that VanMoof has entered is typically granted for a period of up to 18 months and -- importantly -- is designed to help companies avoid bankruptcy. However, it's also often the first step toward bankruptcy proceedings. Under Dutch law, creditors cannot claim their debts during the suspension of payment period, which ends once all creditors are paid, a final agreement with creditors is reached (private or judicial), or when the company is declared bankrupt.

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VanMoof Explores Sale Under Court Protection Because It Can't Pay Bills

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