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After more than six years of development, the legislative
process concerning new Dutch restructuring legislation (Wet
Homologatie Onderhands Akkoord, or WHOA ) that
introduces a Dutch debtor-in-possession proceeding (a Dutch
Scheme ) combining features of chapter 11 of the U.S.
Bankruptcy Code and the English Scheme of Arrangement was finalized
at the end of 2020. The WHOA entered into force January 1, 2021 and
is thus available to companies in distress from now onwards.
Since our previous White Paper of February 2020 on the
Dutch Scheme, the WHOA has been amended in several relevant
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On October 6, 2020, the Dutch Senate approved long-anticipated restructuring legislation allowing for court confirmation of extrajudicial restructuring plans (
Wet Homologatie Onderhands Akkoord, or WHOA ).
The legislation combines features of the U.S. chapter 11 procedure and the English Scheme of Arrangement. With its broad range of jurisdiction and flexibility, the Dutch Scheme should prove to be an effective addition to the restructuring toolbox for both Dutch and non-Dutch entities and for groups of companies, with the possibility of automatic recognition throughout the European Union. The new proceeding can be used to restructure both Dutch companies with a center of main interest in the Netherlands as well as non-Dutch companies with a sufficient nexus with the Netherlands (e.g., by means of significant group activities in the country). It is considered a last-resort pre-insolvency restructuring tool with lim