The WHOA: the launch of the scheme in The Netherlands

Introduction

The Act on Court Confirmation of Extrajudicial Restructuring Plans (Wet Homologatie Onderhands Akkoord (WHOA) also referred to as the “Dutch scheme”) entered into force on 1 January 2021. The WHOA is a restructuring proceeding inspired by the US Chapter 11 proceeding and the UK scheme of arrangement. It provides corporate debtors – excluding banks and insurers – with a restructuring tool with modern features such as inter alia a moratorium a cross-class cram down the deactivation of ipso facto clauses and the termination and/or restructuring of onerous contracts. The WHOA is a debtor-in-possession (DIP) proceeding. Under the WHOA a debtor may offer a composition plan to its creditors and shareholders who may be divided in classes. The WHOA also provides creditors shareholders or employees the option to initiate the proceeding: upon their request...