In this article it is argued that bankruptcy courts really can help in preventing distressed companies to become bankrupt. However, the use of judicial reorganization procedures (moratoria) should then be abolished. By nature judicial reorganization instruments invoke polarization of debtors and creditors in fact making the (financial) problems of distressed companies worse. A new system for reorganization and dispute settlement should be introduced, at least in the Netherlands, in which insolvency judges act as mediators in confidential negotiation sessions between companies and their creditors. These negotiations should take place at an early stage of the insolvency process, in to be established (neutral) ‘Turnaround Chambers’ of district courts, and should be accompanied by a holistic business turnaround process taking place at the company at stake. By introducing this alternative system the dramatic failure rate of current judicial reorganization procedures (between 73%-95% in the Netherlands) can and will be reduced dramatically.

An interview was held with Lex Penders, judge in the court of Utrecht. Subject of the interview was the role of the judge as regierechter (judge-conflictmanager) in the pilot project Customized Conflict Resolution. He talks about his experiences in the pilot and his ideas for future improvements in court hearings.

In this contribution an overview is given of the most recent developments with regard to commercial dispute management and its legal context, in particular in the Netherlands. Firstly, a focus is put on the importance of integral conflict management on the basis of ADR/EDR from the perspective of risk management and cost control. Secondly, recent developments with regard to effective dispute resolution, in particular in government policy, ADR/EDR and in the legal context are discussed. The judicial and the extrajudicial system offer conflict parties various possibilities to effective and efficient dispute resolution. Further, special attention is paid to mediation clauses in commercial contracts. With regard to the European Directive of 21 May 2008 on mediation in civil and commercial matters, Directive 2008/52/EC, its consequences to the Dutch legal system and its importance for commercial dispute resolution management are discussed.