Denmark has enacted amendments to its insolvency legislation that take effect from January 1, 2026. The changes alter procedural rules governing insolvency proceedings, the conduct of the kreditorudvalg (creditors committee), and the rights of foreign creditors to participate in Danish restructuring processes. International companies with Danish counterparties, suppliers, or subsidiaries face real exposure if they miss the compliance deadlines introduced by these reforms.
Denmark's amended insolvency legislation reshapes creditor rights by tightening the proof of debt submission process, expanding the administrator's powers over asset disposition, and introducing stricter timelines for approving a restructuring plan. The changes apply to all insolvency proceedings opened on or after January 1, 2026. International creditors must register their claims within the shortened window set by the appointed administrator or liquidator to preserve voting rights at the creditors meeting.
This alert explains which entities are affected, what the threshold criteria are, and what immediate steps international companies should take to protect their positions.
What changed and when it takes effect
Denmark's insolvency legislation was amended through a parliamentary bill that entered into force on January 1, 2026. The reform transposes elements of the EU Restructuring Directive into Danish law. It also introduces several domestically driven procedural changes that go beyond the Directive's minimum requirements.
The key substantive changes are as follows.
- Shortened claim registration window. Creditors must now file a proof of debt with the administrator within six weeks of the public notice of insolvency proceedings. The previous period was eight weeks. Missing this window results in subordination of the claim – not automatic exclusion, but loss of voting rights at the creditors meeting and reduced priority in distributions.
- Expanded administrator powers. The administrator may now dispose of non-core assets without prior court approval, provided the sale falls within parameters set in the restructuring plan. This accelerates asset realisation but reduces the time available for creditor objections.
- Restructuring plan approval threshold. The amended rules lower the supermajority required for a restructuring plan to be approved by each class of affected creditors. This makes cramdown scenarios more accessible to distressed Danish companies but increases the risk that minority creditors are bound by terms they opposed.
- Cross-border recognition provisions. The amendments clarify that foreign insolvency proceedings recognised under EU legislation take precedence over parallel Danish proceedings for EU-domiciled entities. For non-EU entities, the liquidator must apply to the Sø- og Handelsretten (Maritime and Commercial Court of Denmark) for a recognition order.
The changes apply to all insolvency proceedings opened on or after January 1, 2026. Proceedings opened before that date continue under the previous rules unless the court orders otherwise on application by the administrator.
To receive an expert assessment of your creditor position in Danish insolvency proceedings, contact us at info@ferrazwhitmore.com.
Who is affected and threshold criteria
The amendments affect a defined set of business categories. International companies should assess their exposure against each category promptly.
Trade creditors and suppliers. Any company supplying goods or services to a Danish counterparty is a potential creditor in future insolvency proceedings. The shortened registration window makes early claim preparation essential. A supplier that learns of a counterparty's insolvency late – for example, through a press notice rather than direct notification – may have fewer than four weeks to prepare and submit a proof of debt.
Secured lenders. Banks and alternative lenders holding security over Danish assets must review whether their security interests are correctly registered in the Tinglysningsretten (Danish Land Registry and Charges Register). Unregistered security ranks behind registered claims. The amended legislation does not change priority rules for registered security, but the accelerated asset disposal powers of the administrator reduce the window for enforcement action.
Shareholders and subordinated creditors. The new cramdown mechanism means that equity holders and subordinated lenders in a restructuring scenario face a higher risk of being wiped out or significantly diluted without the need for their individual consent. Any company holding a subordinated intercompany loan to a Danish subsidiary should reassess that exposure.
Foreign creditors from non-EU jurisdictions. Companies based outside the EU. including those from the UK, the US. Alternatively. Asian markets. must now obtain a formal recognition order from the Maritime and Commercial Court before their foreign insolvency representative can act in Denmark. This adds a procedural step that can take several weeks. Delays in obtaining recognition translate directly into lost time during the critical early phase of insolvency proceedings, when asset values and negotiating positions are most fluid.
The threshold criteria for mandatory compliance are straightforward: any creditor with a claim against a Danish entity in proceedings opened after January 1, 2026 is subject to the new rules. There is no minimum claim size. The six-week proof of debt deadline runs from the date of the administrator's public notice, not from the date the creditor receives individual notification.
For strategic guidance on protecting your position in Danish corporate disputes connected to insolvency, see our overview of corporate dispute resolution in Denmark.
Immediate actions for international companies
International companies should treat the following steps as time-sensitive. The risk of inaction is concrete: a creditor that misses the six-week window loses voting rights at the creditors meeting and may receive a materially lower distribution than creditors who filed on time.
- Audit Danish counterparty exposure. Identify all Danish entities that owe your company money or against which you hold contractual rights. Prioritise any counterparty showing signs of financial distress – delayed payments, requests for extended terms, or public reporting of losses.
- Review and update security registrations. Verify that all security interests over Danish assets are correctly registered with the Tinglysningsretten. Gaps in registration can be remedied, but only before insolvency proceedings open. Once an administrator is appointed, the ability to improve your security position is severely restricted under Danish insolvency legislation.
- Prepare proof of debt documentation in advance. Compile the supporting documents needed to establish each claim – invoices, contracts, delivery records, correspondence. Having this documentation ready reduces the risk of missing the six-week deadline in a fast-moving insolvency.
- Assess restructuring plan exposure for intercompany loans. If your group holds subordinated loans to Danish subsidiaries or affiliates, model the outcome under the new cramdown threshold. Consider whether converting debt to equity or adjusting loan terms before any distress materialises is commercially preferable.
- Engage a lawyer in Denmark with insolvency experience. The procedural changes require prompt action. Engaging a lawyer in Denmark who understands both the domestic rules and the cross-border recognition regime is the most reliable way to protect your position from the outset of proceedings.
Companies operating across multiple European jurisdictions should also note that similar reforms are being introduced in other EU member states. For a parallel analysis of how these changes affect creditor rights in another jurisdiction, see our alert on insolvency law amendments in Portugal.
For a full assessment of how the Danish amendments affect your specific creditor position, reach out to info@ferrazwhitmore.com.
About Ferraz & Whitmore
Ferraz & Whitmore is an international law firm based in Lisbon, advising business clients across 46 jurisdictions. Our insolvency and restructuring practice covers both civil law systems across continental Europe and common law systems in English-speaking markets. We advise secured lenders, trade creditors. Additionally, corporate groups on creditor rights, restructuring plan participation. Additionally. Cross-border insolvency proceedings. including matters before the Maritime and Commercial Court of Denmark and equivalent bodies in other Nordic and European jurisdictions. Our team has experience with administrator appointments, creditors meeting procedures, and proof of debt filings across 15 practice areas. As a law firm in Denmark with cross-border capabilities, we help international clients identify exposure early and act within the tight timelines that reformed insolvency legislation imposes. To discuss how the Danish amendments affect your position, contact us at info@ferrazwhitmore.com.
Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Ferraz & Whitmore assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@ferrazwhitmore.com.