The WHOA is flexible and offers the freedom not to offer a composition to all categories of creditors. Creditors to whom no composition is offered will then retain their claims. As part of the agreement, the company has the power to unilaterally terminate agreements. Financiers can lend new money and create security interests for it.
A possible class division could be:
- security holders (pledge or mortgage), such as bank lenders;
- trade creditors;
- subordinated financiers (shareholders).
What are your rights and obligations: towards your customer and the credit insurer
Retention of title
An important element of WHOA proceedings is that the debtor remains disposable and keeps the company afloat. After all, the procedure is aimed at keeping the company afloat and preventing bankruptcy.
The cooling-off period may last up to eight months (two times four months) and during this period, the supplier with a retention of title may not take back the goods it has delivered without court authorisation.
Continued deliveries times WHOA trajectory
For the continuation of the business during the WHOA process, in most cases it is important for the debtor not only to be able to continue to use, consume or dispose of the items already in its possession, but also to continue to be supplied with new items.
Consultation!
If you pass on, always consult with your credit insurer. The policy provisions say that all payments will be imputed to the oldest outstanding invoices. You need explicit permission from your credit insurer, otherwise you can cut yourself ugly in the fingers. After all, payments are imputed to the insured portion and the new delivery is then not insured because of the claim threat.
