the WHOA entered into force on January, 1 2021

The Wet Homologatie Onderhands Akkoord (WHOA) allows the court to approve (homologate) a deed of arrangement between a company and its creditors and shareholders for debt restructuring. Approval makes an agreement binding on all creditors and shareholders involved in the agreement. This is also referred to as a compulsory settlement.

The WHOA is intended for companies that are profitable in themselves but, due to excessive debt or structural costs, need a restructuring of debts and liabilities to prevent them from going into suspension of payment or bankruptcy.

Leave a Comment

Your email address will not be published. Required fields are marked *