26 May 2020: Dutch ACPP (‘WHOA”) adopted by Dutch Parliament’s House of Representatives
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On 26 May 2020, the Dutch Parliament’s House of Representatives adopted the bill for an Act on the Confirmation of Private Plans (‘ACCP’). It is now up to the Dutch Senate to vote on this bill. The House of Representatives also voted in favor of certain amendments. One amendment provides for a minimum distribution for small enterprises with an unsecured claim of 20% (unless there is a compelling ground for a lower distribution). Another amendment denies a (professional) secured creditor who provided a loan to the company the right to claim a cash distribution.
The bill for an Act on the Confirmation of Private Plans (‘ACPP’), submitted on 5 July 2019, enables a business on the brink of insolvency to impose a compulsory plan on its creditors and shareholders, outside suspension of payments and bankruptcy proceedings. The ACPP bill takes inspiration from the British Scheme of Arrangement and the US Chapter 11 procedure. The pre-insolvency plan provided for in the bill will give companies in financial difficulties an excellent opportunity to restructure. It will then no longer be necessary, as Van Gansewinkel Groep BV did in 2015, for example, to move to England for this purpose. The Netherlands is expected to become a very appealing jurisdiction for struggling businesses wishing to restructure.
For more information on this bill see our previous publication ‘Bill for an Act on the Confirmation of Private Plans (ACPP)’.