27 October it was confirmed that the Dutch Scheme (WHOA) will enter into force as from 1 January 2021. The Dutch Scheme will strengthen the company’s reorganization capabilities as it allows the company to bind stakeholders to a restructuring agreement in order to avoid formal insolvency proceedings.
Besides a strong (financial and stakeholder) management, assessment and determination of the rights and positions of the stakeholders are essential for a successful restructuring. AKD’s Restructuring team has a strong track record in guiding management teams and stakeholders through the appropriate restructuring processes.
The highly anticipated Dutch legislation regarding Court Confirmation of Extrajudicial Restructuring Plans (CERP) has been approved by the Dutch Senate. The current circumstances regarding the (COVID-19) coronavirus increased the pressure on the Dutch legislator to implement the scheme. CERP is designed for companies that are in itself profitable, but suffer from over-indebtedness or high structural costs and thus need to have their debts and obligations reassessed. Legal professionals envision that CERP will provide a unique and highly effective restructuring tool.
The goal of the new legislation is to allow companies to restructure without utilizing traditional formal insolvency proceedings.
This leaflet will provide a short overview of the new legislation and its groundbreaking features.