On 1 January 2021, the Homologation Private Agreement Act (WHOA) came into force. The WHOA offers companies in financial difficulties the chance to restructure debts without requiring a relaunch after bankruptcy or suspension of payments. The WHOA can also be used to achieve a controlled winding-up of (part of) your company. The legal form in which you run your company is irrelevant. The WHOA can be applied to any company, regardless of its legal form.
Before the introduction of the WHOA, agreement with all interested parties was necessary to reach a private agreement. A single individual stakeholder could block the conclusion. Even if the offered agreement was the best option for all concerned. In practice, viable companies that had run into difficulties due to circumstances were forced to file for bankruptcy. The WHOA could even impose an agreement on dissenting creditors and shareholders. The WHOA can therefore lead to drastic measures for shareholders and all creditors. The law, therefore, provides for a careful procedure with many safeguards, but also provides for an expeditious approach. The outcome must be reasonable and fair if it is to be imposed on dissenting creditors and/or shareholders.
Then we cordially invite you to contact one of our WHOA experts