In a constantly changing economic environment, companies may face financial challenges that threaten their survival.
In a constantly changing economic environment, companies may face financial challenges that threaten their survival.
In a constantly changing economic environment, companies can face financial challenges that threaten their survival. Causes can range from economic headwinds and changing market conditions to mounting debt and acute liquidity problems. In recent years, many companies have felt the aftermath of the corona pandemic, facing mounting tax liabilities and rising operating costs. In such challenging times, specialist legal guidance is essential to ensure the continuity of your business and maintain future prospects.
Since its entry into force in 2021, the Dutch Act on Court Confirmation of Private Restructuring Plans (WHOA) has profoundly transformed the Dutch restructuring landscape. This Act enables companies in financial distress to reach a compulsory settlement with creditors and shareholders outside of formal bankruptcy proceedings. A distinctive feature of the WHOA is that business operations can continue uninterrupted during the process, as there is no mandatory publication and the procedure can take place with relative discretion. This makes it an attractive instrument for viable companies burdened by excessive debt but still holding potential for a healthy future.
At Guldemond Advocaten, we have specialised in the WHOA since its introduction. We guide you through the entire process: from the initial financial analysis and drafting of the restructuring plan, to negotiations with creditors and the final court confirmation. Throughout this process, we make full use of the various options the Act provides, such as requesting a cooling-off period to create stability and enable a sound plan to be developed, without creditors taking individual enforcement measures.
In addition to the WHOA, there are various other avenues to restore or maintain a company’s financial health. Our lawyers have extensive experience in restructuring both financial debt and operational obligations. We always take a comprehensive view: which activities are profitable, how can the cost structure be optimised, and which strategic choices can contribute to recovery?
An important part of our work involves negotiating with key stakeholders such as banks, major creditors, and the tax authorities. Our experience shows that a proactive approach and transparent communication are often key to successfully renegotiating financing terms or payment arrangements. We support you in reviewing credit facilities, deferring or reducing payment obligations, and restructuring existing securities.
The best time to think about restructuring is before problems become acute. We therefore advise entrepreneurs to take timely action at the first signs of financial difficulties. By intervening early, there are usually more opportunities to ensure business continuity and more options remain open for a sustainable solution. These can range from restructuring business operations and streamlining processes to reconsidering the financing structure.
In situations where financial problems seem insurmountable, it is important to understand what collateral is available and how it can be used or affected. This includes liens, mortgages and title reservations. We advise both creditors and debtors on the position of collateral in the event of impending insolvency. For creditors, it is important to secure and optimally exercise their rights. For debtors, it is crucial to understand obligations and options, for example when renegotiating collateral or releasing assets for restructuring.
If a restructuring does not succeed (in time), bankruptcy or suspension of payments may be inevitable. We also assist you in these situations. We have extensive experience in insolvency proceedings and can guide you through:
Financial restructuring and insolvency are never isolated. They often touch upon other areas of law such as labor law in reorganizations, lease law in renegotiating real estate contracts, and corporate law in changes in corporate structure. Our lawyers therefore work closely together and, where necessary, involve specialists from different disciplines to arrive at a complete and integrated solution. This multidisciplinary approach enables us to oversee all aspects of your situation and advise on the best strategy.
Every industry has its own challenges and dynamics. Whether it is a retail company struggling with the transition to online sales, a manufacturing company struggling with increased commodity prices, or a service provider needing to adapt its business model to new market conditions – we understand the industry-specific challenges and opportunities. Our lawyers have experience in a variety of industries and can provide you with advice tailored to your specific situation.
We realize that financial problems have a major impact on business owners, employees and their organizations. That’s why we take a personal approach where you get a dedicated team of lawyers who know and understand your situation. We are there for you when it matters, communicate clearly about opportunities and risks, and are always available when acute action is needed. Our goal is not only to assist you legally, but also to work with you as a trusted partner to find a lasting solution.
Is your company facing financial challenges or would you like to learn more about WHOA and other restructuring options? If so, please contact the attorneys at Guldemond Advocaten.
