WHOA
Creditors' Agreement under the WHOA: A Practical Case
How an SME in the manufacturing industry secured continuity and prevented a technical bankruptcy through a WHOA agreement.
Read moreStay up to date with the latest developments regarding WHOA, financial restructuring, and insolvency law for SMEs.
How an SME in the manufacturing industry secured continuity and prevented a technical bankruptcy through a WHOA agreement.
Read moreWhat are the rights and obligations of the Works Council during a WHOA process? An overview of the key points of attention.
Read morePractical guidelines for negotiating and legally enforcing debt settlements with the tax authorities.
Read moreAnswers to important questions about financial restructuring and preventing bankruptcy for your company.
The WHOA (Act on the Confirmation of Private Composition) is a Dutch legal framework that enables companies in financial difficulties to present a restructuring plan to their creditors. The goal is to prevent a technical bankruptcy by reaching a binding agreement on debt restructuring, without court intervention in an early stage.
The WHOA is particularly suitable for SMEs that are viable but are struggling with acute liquidity problems or an unsustainable debt burden. It is an instrument for companies that want to safeguard their continuity through negotiations with creditors, including the Tax Authorities, banks, and suppliers.
In a bankruptcy, the company is liquidated and operations cease. A WHOA process is specifically aimed at allowing the company to continue. The enterprise remains under the management of its directors, while negotiations take place on a plan to reduce debts and make the operation healthy. It is a preventive route.
Yes, the Tax Authorities are a common creditor and can be involved in the negotiations. A well-drafted WHOA plan can provide for a phased payment arrangement or a partial remission of tax debts, provided this is acceptable to all creditors in the plan and contributes to the continuity of the company.
The duration varies per case complexity, but a process can take several months to about a year. The first phase consists of an analysis and drafting a feasible recovery plan. This is followed by the negotiation phase with creditors. Our guidance is aimed at making this process run as efficiently as possible.
If you have doubts about the financial future of your company, please contact us in a timely manner for a confidential conversation. We will quickly analyze your situation, assess the feasibility of a restructuring, and provide clear advice on possible next steps. Early detection significantly increases the chance of a successful outcome. You can reach us via contact.html.