Liquidation Agreement

The Act on the Confirmation of Private Restructuring Plans (WHOA) enables companies, that are at risk of bankruptcy, to impose a compulsory settlement on their creditors and shareholders. In addition to the possibility of restructuring and reaching a Restructuring Agreement, when there is a status of unavoidable insolvency and unprofitable business activities, the WHOA also offers the option to end these business activities in an orderly manner and to reach a ‘Liquidation Agreement’.

Financial support and expert guidance are necessary in order to reach a Liquidation Agreement

In addition to the legal aspects, economic and financial matters also play a role in a Liquidation Agreement. Is there a status of unavoidable insolvency? How much cash is required to be able to reach a Liquidation Agreement? What form does the classification take? What are the consequences of cancelling contracts? What financial, legal and operational information is mentioned in the plan on which creditors must vote? In addition to these questions, two of the values of the company in question play an important role, i.e. the value in bankruptcy (bankruptcy value) and the value that can be retained in the event of an orderly winding-up (plan value).

Preparation WHOA

To enable a Liquidation Agreement to be reached, Hermes Advisory has done a lot of preliminary work to enable it to effectively support small and medium-sized enterprises. The guidance can already start during the preparatory phase, before a formal WHOA process is started.

“Hermes Advisory offers a QuickScan and has automated a large part of the follow-up steps within a WHOA process. Although we understand better than anyone that every company and every situation is unique, we have tried to generate the required documents automatically. Through extensive automation, we have tried to make the WHOA accessible to smaller companies too.”

Our team consists of experts who speak the language of SMEs and can guide them through all phases of the WHOA process.

Our Methodology

Our step-by-step plan helps you to communicate easily with relevant parties in order to reach a WHOA Liquidation Agreement. Go through the questionnaire and enter your details where required.

Step by step plan :

  1. Signing up and registering
  2. Quick Scan
  3. Provision of information
  4. Drafting an agreement
  5. Voting on the agreement
  6. Confirmation (ratification)