The Commission’s proposed
preventive restructuring frameworks would reduce differences
between EU regimes but several issues need to be ironed
On November 22 2016, the European Commission issued a
proposed directive covering preventive restructuring
frameworks, second chances for entrepreneurs and other measures
intended to increase the efficiency of restructuring,
insolvency and debt discharge procedures. If implemented, it
would significantly close the gap between member states'
existing restructuring and insolvency frameworks, placing a
greater emphasis on corporate rescue and reducing the ability
of shareholders and out of the money creditors to block a
viable restructuring proposal.
The directive does not attempt to harmonise core aspects of
insolvency legislation, such as the ranking of creditor claims.
Instead, it focusses, as far as corporate debtors are
concerned, on four procedural proposals which are intended to
maximise the chances of a company with a viable business being
able to restructure its debts rather...