Expedited implementation of Dutch Scheme legislation

The Dutch government has qualified the bill for the introduction of a pre-insolvency composition (the so-called: “Dutch Scheme”) as emergency legislation with a view to entry into force on 1 July 2020. 

The new legislation introduces the possibility for a creditors to offer a composition plan outside formal insolvency proceedings. Such compulsory composition plan can extend to all creditors (including preferred and  secured creditors) and shareholders. Please click here for a presentation that sets out how the Dutch Scheme will work.