Financing in distress against security from an English, German and Dutch perspective: a walk in the park or in a mine field?

Rules on transaction avoidance in insolvencies must find a balance between protecting creditors on the one hand and enabling struggling businesses to restructure their business on the other. This article compares the English, German and Dutch rules on transaction avoidance applied to the financing of distressed debtors against security. A distinction is made between cases in which the debtor provides security only for new credit and cases where the security right secures both old and new credit. Legislation should at least provide a safe haven under which lenders can take security for new money.