Global Insolvency | Daily News Headlines on Insolvency Developments across the Globe

The Netherlands: Multi-stakeholder view on valuations under the WHOA by John Peters and Koos Beke

The proposed new Dutch restructuring law: Wet Homologatie Onderhands Akkoord, or WHOA in short, is expected to be enacted in the second half of 2020. The WHOA will enable debtors to offer a tailor-made, court-sanctioned restructuring plan to all or some of their creditors and shareholders while remaining in control of the company. We expect it will be a better restructuring tool than the UK Scheme of Arrangements or the US Chapter 11.

The Netherlands: the proposed fast and flexible restructuring procedure by Sebastiaan Van Den Berg

On 5 July 2019, the Dutch Ministry of Justice submitted to Parliament a bill, the Act on the Confirmation of Private Plans, seeking to introduce a pre-insolvency procedure in the Netherlands, which one might refer to as the “Dutch scheme”. It is expected or hoped for that the bill will be adopted by Parliament this year and enter into force in January or July next year.

An international multi-disciplinary approach to combatting fraud in insolvency by Carmel King & Willem van Nielen

An international multidisciplinary approach to combatting fraud in insolvency is a practical necessity. Where cases are multi-jurisdictional, it is essential to use innovative approaches with input across several disciplines. The INSOL Europe Anti-Fraud Forum (“AFF”) was established with this as one of its aims. This working group currently has 69 members spanning 22 jurisdictions, all of whom specialise in using insolvency processes to assist with the tracing and recovery of assets.

The Netherlands: modernisation of the bankruptcy procedure by Jochem Hummelen

On 1 January 2019 the Modernisation of Bankruptcy Procedure Act (MBPA) entered into force in the Netherlands. The MBPA brings Dutch bankruptcy law into the 21st century by modernising a number of aspects of the bankruptcy procedure (faillissement).

In particular, the MBPA aims to achieve the following three goals:

i) increased digitalisation and transparency;
ii) increasing the speed of the procedure; and
iii) providing for a more madeto- measure procedure and more specialisation and expertise.

Supreme Court provides more clarity on the effect of a bankruptcy on contracts

Recently, the Dutch Supreme Court rendered a judgment in which it has given a detailed explanation of the effects of bankruptcy proceedings on a contract or other legal relationship.[1] The case in question involved a dispute between a bankruptcy trustee and a bank as to whether the bank could file its post-bankruptcy legal costs as a claim in the bankruptcy proceedings. The Supreme Court took the opportunity to elaborate on earlier case law[2] and provide clarification regarding claims arising out of continuing performance contracts – such as licence contracts – and claims for damages.

Dutch government publishes new definition UBO | Nederlandse regering publiceert nieuwe definitie UBO

Dutch government publishes new definition of UBO On 6 April 2018 the Dutch Minister of Finance published an updated draft decree which contains the new definition of ultimate beneficial owners (UBOs) of companies and other entities (Uitvoerings-besluit Wwft 2018, the Decree). The Decree was sent to the Upper Chamber (Eerste Kamer) and the Lower Chamber (Tweede Kamer) of the Dutch parliament by way of a so-called preliminary scrutiny procedure (voorhangprocedure).

Introduction of senior non-preferred debt in the Netherlands

The Netherlands legislature has published the legislative proposal to introduce 'senior non-preferred debt' in the Netherlands. It will implement the relevant EU Directive. The Directive and proposed implementing Act aim to facilitate the application of bail-in under the EU recovery and resolution framework for banks, investment firms and their groups and it allows such institutions to maintain sufficient - subordinated - 'bail-inable' capital (also known as 'MREL' or 'TLAC').

Country report from the Netherlands

The Dutch Minister’s announcement of a multi-disciplinary approach to combat bankruptcy fraud has lead to a legislative programme that went into force last year, wherein the duty of the trustee is extended to combat bankruptcy fraud.

New Draft Bill seeking to introduce Pre-Insolvency Proceedings in The Netherlands

On 5 September 2017, the Dutch government published a new draft bill seeking to introduce pre- insolvency proceedings in the Netherlands, report Michael Veder and Nicolaes Tollenaar of RESOR. “By way of short summary, the intended procedure will be very similar to the English scheme, with a few notable differences. Under the proposed bill, both the debtor and, under certain circumstances, a creditor can propose or initiate a restructuring plan. Like the English scheme, the restructuring plan can be implemented outside formal insolvency proceedings.

The Netherlands Report: The legislative programme ‘Recalibration of Bankruptcy Law

In November 2012 the Dutch legislator launched the legislative programme ‘Recalibration of Bankruptcy Law’. This legislative programme steadily makes progress and is based on three pillars: (i) enhancing the possibilities for corporate restructuring, (ii) modernisation of the bankruptcy procedure and (iii) combating bankruptcy fraud.