Rapidly Implemented Amidst COVID Crisis, New Dutch Restructuring Procedure Offers Relief to Businesses and Organizations Struggling with High Debts

Abstract

A recently enacted Dutch law enables businesses and organizations to avoid bankruptcy through a court-approved restructuring plan. As an implementation of the 2019 European Restructuring Directive, the so-called Dutch Scheme can be used to restructure debts and improve profitability, for example by applying forced debt reduction or debt-for-equity swaps. This new legislation entered into force on 1 January 2021 and is already proving to be an effective tool for business in financial distress. In this article, the authors describe its main characteristics. insolvency proceedings, restructuring plan, WHOA, Dutch Scheme, restructuring expert, debtor-in-possession