Restructuring options

From growth to crisis: when cash flow dries up

From Growth to Crisis: When Cash Flow Dries Up

A thriving business can quickly turn into uncertainty. Cash flow deteriorates, while suppliers and partners lose patience. Where flexible payment arrangements were once possible, a key supplier now demands immediate payment before making further deliveries. Your landlord threatens to terminate the lease, and a major distributor withdraws access to their sales channel. The liquidity simply isn’t there to meet these demands.

Sound familiar? Many entrepreneurs only realize how dependent they are on a handful of crucial partners when it’s too late. A lack of timely alternatives can quickly escalate into a crisis—with bankruptcy looming as the final outcome. But there are ways to stay in control and find a structured solution.

👉 Which restructuring option fits your situation?

Depending on the severity and nature of financial difficulties, different strategies may offer a way forward:

Out-of-court creditor settlement – Negotiating with creditors without court involvement.
Dutch Scheme - WHOA procedure – A legally binding restructuring plan, even without full creditor consent.
Suspension of payments – Temporary protection from creditors to enable a turnaround.
Bankruptcy (structured restart/pre-pack) – Sometimes inevitable, but can be managed.
Turbo liquidation – Fast business dissolution when no assets remain.

The best option depends on your business structure, debt position, and creditor willingness to cooperate.

🚀 Take action early. Discuss your situation and find the best path forward.

The Most Accessible Debt Restructuring Option

Private settlement

“My creditors were willing to cooperate, but they needed to see it was their best option.”

A private settlement is the simplest way to restructure debts. You negotiate with creditors to reach a payment plan or partial debt forgiveness. This avoids costly legal proceedings and gives your business a fresh start.

✅ Fast and flexible – no court approval required.

✅ Creditors gain certainty about (partial) repayment.

✅ Can prevent bankruptcy or a forced restructuring under WHOA.

❌ Requires creditors to be willing to cooperate.

❌ No legal enforcement – a single creditor can block the process.

When to Use It?

• When creditors and shareholders are open to negotiations.

• When bankruptcy would be more damaging for all parties involved.

• When the business can return to profitability after an agreement is reached.

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The Dutch Scheme (WHOA) - Restructuring Without Unanimous Creditor Consent

“I had a solid plan, but a few creditors refused to cooperate. I couldn’t pay them all, so I had to find a way to enforce an agreement.”

The Dutch Act on Court Confirmation of Extrajudicial Restructuring Plans (WHOA) is designed for viable businesses seeking to restructure their debts but facing resistance from some creditors. With the WHOA, you can have a restructuring plan approved by the court (homologation), making it binding on dissenting creditors. This process is often pursued when an out-of-court settlement is no longer considered feasible.

✅ Not all creditors and shareholders need to agree; non-cooperating parties can be bound by the court.

✅ If all creditors approve the plan, court confirmation is not required.

✅ A WHOA process suspends bankruptcy petitions and offers protection against asset seizures, maximizing the chances of success.

✅ It can be initiated by a struggling company or—upon court approval—by creditors, shareholders, or employee representatives through a restructuring expert.

❌ Requires a detailed restructuring plan.

❌ The process takes time and requires legal preparation.

❌ The business must continue meeting its current obligations (e.g., rent and tax payments) throughout the process.

When to Use It?

When some creditors are willing to cooperate, but others are blocking the process.
When the business is fundamentally viable but struggling with excessive debt.
When you want to avoid bankruptcy by enforcing a legally binding agreement.

Meer over de WHOA

Temporary moratorium

Suspension of Payments – Protection from Creditors

Suspension of payments (moratorium) provides temporary protection from creditors and can prevent immediate bankruptcy proceedings.

✅ Creditors cannot take collection measures during the suspension period.

✅ Allows time to negotiate a settlement or restructuring plan.

✅ Can serve as a bridge between an unsuccessfull WHOA process and bankruptcy.

❌ Debts remain until a suspension agreement is reached – it is primarily a postponement, not a cancellation.

❌ Preferential creditors (such as the Tax Authority) and secured creditors (such as banks) are not affected by a suspension agreement.

❌ Can still lead to bankruptcy if no structural solution is found and/or the position of all creditors deteriorates.

❌ Requires cooperation between the company’s management and court-appointed administrators.

When to Use It?

When creditors are seeking enforcement (e.g., through asset seizures) while you are working on a restructuring solution.
When restructuring options are being explored and additional time is needed.
When the business is fundamentally viable but experiencing temporary cash flow constraints.

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Preserving Business Value

Bankruptcy & Prepack

“I had to be realistic. The debt burden was too high, but my business still had value. A prepack gave me the chance to selectively restart.”

Sometimes, a controlled restart through bankruptcy or a prepack is the best solution. This involves assessing opportunities to continue the viable parts of the business before bankruptcy is declared.

✅ Preserves value and provides a fresh start.

✅ Allows for the disposal of unprofitable divisions.

✅ Enables a restart without carrying over old debts.

❌ Requires cooperation with a court-appointed trustee and thorough preparation.

❌ Not always possible – depends on the court and specific circumstances.

When to Use It?

When the debt burden is unsustainable, but the business itself still holds value.
When you want to continue only certain parts of the company.
When restructuring within the existing structure is no longer feasible.

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