Dutch (in)solvency restructuring options
What is changing?
The Dutch Bankruptcy Act will be amended. If your business is in financial difficulties, you can reach an agreement with your creditors. The court can ratify (confirm) such an agreement. Creditors or shareholders who do not agree with such a composition agreement can still be compulsory bound by hereto by a Dutch Court on petition.
A compulsory settlement will also be possible outside of bankruptcy. Do the vast majority of creditors support a restart of your business? Then a single or a minority of creditors or shareholders cannot stop such a restructuring.
As an entrepreneur in financial difficulties, you may conclude an agreement with creditors in order to restructure problematic debts. The judge can ratify this agreement (homologation).
Companies in financial difficulties
The Private Agreement in Bankruptcy Approval Act (WHOA) is expected to be implemented and take effect on October 1, 2020.
Note: The effective date of this (legal) amendment is not yet final. Entry into force depends on approval by the House of Representatives and the Senate or the announcement of the General Administrative Order (AMvB) or ministerial regulation and publication in the Official Gazette or the Government Gazette.
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