The Dutch Act on the Confirmation of Private Restructuring Plans (ACPRP, or WHOA in Dutch)
As of 1 January 2021, the Dutch Act on the Confirmation of Private Restructuring Plans (hereinafter referred to as ACPRP) entered into force. The act gives organisations the possibility to restructure their debts by means of a private restructuring agreement with their creditors and shareholders. In this way an impending bankruptcy can be avoided, or an organisation can achieve a controlled discontinuation and settlement.
The purpose of the WHOA is to give companies that expect to be unable to meet their payment obligations in the short term a possibility to present their creditors and shareholders with a private agreement. If there is sufficient support among the creditors for the agreement, the company can then submit the agreement to the court for approval. If the court confirms the agreement, it becomes binding for all creditors and shareholders involved.
A major advantage of the ACPRP is that an agreement can also be imposed on creditors who vote against it. This was not possible before 1 January 2021. The ACPRP can therefore prevent that viable companies unnecessarily end up in imminent bankruptcy.