Well-known fashion chain Shoeby has averted its bankruptcy by successfully using WHOA. Shoeby had run into financial difficulties as a result of the corona crisis. A restructuring agreement with its creditors could save Shoeby. Since not all creditors wanted to agree, Shoeby was forced to initiate WHOA proceedings and ask the court in that context to ratify the agreement. That has now happened, binding all creditors to the agreement.
During the corona crisis, a new section was urgently added to the bankruptcy law. This was in line with the European Restructuring Directive. As a result, the WHOA was introduced with effect from 1 January 2021. The law aims to facilitate companies that are fundamentally viable to implement a turnaround plan and financial restructuring of debts, potentially averting bankruptcy.
Although reaching an informal agreement with creditors has always been a possibility, thanks to the WHOA, such an agreement can also be declared binding. The fact that an agreement can be declared binding has also ensured that, since its introduction, informal reorganisations with private agreements have been achieved after all. In practice, the threat of a WHOA procedure and homologation request is often enough to make creditors see the reasonableness of the proposed settlement.
The most important success factor in successful restructurings turns out to be the timely engagement of a well-integrated multidisciplinary team of expert and pragmatic professionals - professionals who understand how to mobilise the common interest of the stakeholders involved and, in connection with all stakeholders, realise a supported solution (agreement).At the same time, these professionals must be able to be sharp and decisive when individual interests threaten to prevail over the common interest. They speak the 'language' of banks, the tax authorities, the UWV and other major creditors of the company, among others.
When remaining time is scarce, knowledge, experience, multidisciplinary teamwork and good connections prove decisive. Marxman Advocaten's Restructuring & Insolvency Team is a well-established team that also cooperates with other professionals on a multidisciplinary basis. Over the past few years, we have been able to supervise and satisfactorily complete a considerable number of restructuring projects.
We are happy to share our approach, knowledge and experience with fellow professionals and all players involved in (WHOA) restructurings. An eminently suitable environment for this is the independent Foundation Knowledge Platform AllesOverWHOA, co-founded by Marxman Advocaten.
Should you be interested in an informal exchange of views on a possible restructuring, cooperation in (WHOA) restructuring processes, or Foundation Knowledge Platform AllesOverWHOA, please let us know. Bas Besseling can be reached at 0652573320 (call or whatsapp) or email besseling@marxman.nl.