The proposal for a Private Composition Scheme ('WHOA') Act, submitted on July 5, 2019, allows a company threatened with insolvency to impose a compulsory composition on its creditors and shareholders, outside of suspension of payments and bankruptcy proceedings. The WHOA proposal is inspired by the British Scheme of Arrangement and the American Chapter 11 procedure. The pre-insolvency agreement provided for in the bill will offer companies experiencing financial difficulties an excellent opportunity to restructure. It will then no longer be necessary, as Van Gansewinkel Groep BV did in 2015, to relocate to England for this purpose. The Netherlands is expected to become a very attractive jurisdiction for struggling companies wishing to restructure.  

Pieter Christiaan van Prooijen of Hermes Advisory and Martin Poelman of Wintertaling discuss the main points of the WHOA proposal in an October 2019 contribution that you can here can be found. For further information on this topic, please contact Martin.