Reaching an agreement on a debt settlement without the consent of all creditors.

The Private Agreement Homologation Act (WHOA) gives companies in financial difficulties the opportunity to restructure their debts by offering their creditors and shareholders a private agreement. Thanks to the WHOA procedure, the court can approve (homologate) a private agreement between a company and its creditors, whereby all involved and non-involved creditors are bound by the agreement. 


The court can therefore approve (homologate) after which all creditors and shareholders involved in the composition are bound by it, even if they voted against or did not vote. This is also known as a forced agreement. The WHOA amends the Bankruptcy Act and should make it easier to reach a private agreement. This makes it easier to reorganize or liquidate companies. Companies with insufficient chances of survival also benefit from the WHOA, because they can go out of business without going bankrupt. 

With the WHOA, companies with prospects have an instrument to prevent bankruptcy.

The court must find it plausible that the business activities of the company are viable and that bankruptcy can be averted with the composition. Prior to such a ruling, it rightly follows that for a successful WHOA, the debtor has a heavy responsibility to inform the creditors correctly and fully and to actually give them the opportunity to express their views on the plan.


Unlike in the case of bankruptcy, the board retains full power of disposal over the company. The company can therefore continue to function as before during the offering of the plan. The entrepreneur has a lot of freedom in offering the agreement. First of all, a composition can relate to all types of creditors: unsecured creditors, preferential creditors and creditors with pledges and mortgage rights. The rights of shareholders can also be changed in a composition.

Companies without prospects can use the WHOA for the financial settlement of a company. The WHOA makes it possible to stop in a controlled manner while retaining control over your company.

This can prevent major financial damage. This is in contrast to a bankruptcy where a curator takes over your company and you no longer have a say. Also with regard to current agreements such as rent, there are some changes due to the WHOA. The tenant can terminate it unilaterally with the permission of the court, if the landlord does not agree to a proposed voluntary change or termination.


As of June 1, 2021, SMEs who use the WHOA can apply to Qredits for a Corona restart credit (TOA credit). You can save up to 100.000 euros borrow on favorable terms. This way you can restart, expand or adjust your business activities. 


The rights of employees cannot be changed by means of a WHOA process.

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