Mortuary Construction

In a house of mourning construction viable parts of a company are transferred to another company, so they can survive. The non-viable parts remain in a company that can not survive: the house of mourning which then bankruptcy is. In fact, there is a restart .

Although the moratorium is basically meant to restart this procedure is not effective in practice and leads in practice yet to bankruptcy (one then says that the suspension the vestibule until the bankruptcy). However, a bankruptcy is basically a liquidation process : the workers are laid off and all assets will be sold at auction to pay creditors. When in principle still viable parts of the group are on self-employment (profitable) business (es) function is in fact destroyed economic potential.

The viable parts are split and inserted into a new company. For example, it created a new holding company that buys profitable parts and takes over the corresponding employment contracts. This allows the 'core business' can survive. The remaining parts will go the bankruptcy proceedings. The concept was introduced by economist and auditor Lense Koopmans during OGEM debacle . In OGEM led there at that time that only 3% of employees were laid off. This illustrates the advantage that there are fewer layoffs and the company continues to exist.

A drawback of the dying story is that the creditors pay the bill. They are left with claims against a bankrupt house of mourning, and probably receive less than if the company had gone bankrupt as a whole.