For the first time a Dutch court has issued a ruling homologating a compulsory settlement under the new WHOA. The case involves a company in the events industry, whose operations have ceased immediately since March 15, 2020. In 2019, the company still had a turnover of almost EUR 5 million and 25 employees. A number of rental, lease and employment agreements have been terminated.
The agreement also restructured the debt burden of more than EUR 1.5 million. Thus the unsecured creditors receive 16% of their claims and the tax authorities 21% (of more than EUR 0.5 million). This will allow the company to continue with a significantly reduced debt burden (after the crisis). What is special is that the tax authorities have agreed to a lower percentage than the usual, double percentage in bankruptcies.
A good example of how a company that got into trouble as a result of the corona crisis can get back on a financially sound footing with the help of the new WHOA.