Ipso facto provisions (WHOA)

Provisions on the basis of which a debtor’s commitments or obligations change, obligations to the debtor can be suspended, or agreements with the debtor can be/are dissolved, due to the fact that the debtor is preparing or offering a WHOA composition, a restructuring expert has been appointed, a cooling-off period has been declared (or requested), and/or events or actions directly related to this. Under Article 373(3) of the Faillissementswet (Bankruptcy Act), these contractual provisions have no effect.