Vol 18 (2021) - Issue 1

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Creditors’ Rights under the New ‘Dutch Scheme’

Synopsis
The 'WHOA' is a new Dutch pre-insolvency restructuring procedure. It allows for a scheme to be offered to
the company's creditors and shareholders. The procedure incorporates protective rights and safeguards in the interests of creditors. These include the right to request the appointment of a restructuring expert with the exclusive right to offer a scheme. Creditors are also entitled to adequate protection of their interests if the court orders a moratorium and the court can approve DIP financing if this serves the creditors' interests. Finally, the restructuring expert can request the court to issue special orders in the creditors' interests.