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Over the last decade, the Dutch legislator has been developing new bankruptcy and restructuring laws to equip businesses with enhanced tools to navigate financial challenges. One of these instruments is the Wet homologatie onderhands akkoord, also known as the WHOA or Dutch scheme, which came into effect on 1 January 2021.
The WHOA is a pre-insolvency debtor-in-possession scheme proceeding, which allows the debtor to impose a restructuring plan on dissenting (classes of) creditors and shareholders. The procedure is designed such that court involvement is in principle minimal and can be completed in a relatively short timeframe. If necessary, specialised judges can be involved before the restructuring plan is voted on, to get clarity on any issues that might prevent successful implementation of the restructuring plan and the intended restructuring.
The WHOA provides businesses with a structured and flexible process to negotiate debt agreements and restructure their financial obligations. This promotes collaboration among stakeholders and safeguards business operations and the interests of all involved parties. As such, this highly flexible instrument presents an alternative to insolvency mechanisms like the US Chapter 11 and the UK Scheme of Arrangement and Restructuring Plan.
The WHOA has proven itself as an effective restructuring tool used in both local and cross border restructurings. For more information, please reach out to one of our team members.
Sustainability is becoming an increasingly important factor in the decisions of investors, companies, consumers, shareholders and policy and law makers. The broadly supported awareness of Environmental, Social and Governance (ESG) objectives is reflected in many international voluntary standards as well as in an increasing number of European regulations.
Today, on 12 November 2024, the Court of Appeal of The Hague ruled in appeal in the Dutch climate case between Friends of the Earth Netherlands (Milieudefensie) v. Shell Plc (Shell).
The Corporate Sustainability Due Diligence Directive (CSDDD) has created a new sustainability standards framework in Dutch (corporate) law.
Read our memo about the WHOA and find further information here:
