The European Commission’s plan for harmonising insolvency frameworks across member states has picked up pace, as a proposed directive is due for release at the end of October.
While it’s been talked about for many years, the political will for change has increased rapidly since a harmonisation project was included in the Commission’s capital market union (CMU) action plan last year.
Years of reforms at national level haven’t provided the certainty needed by creditors and debtors operating on a cross-border basis.
"If we're going to have a Single Rulebook and other regulations across all member states and they're all arguably successful, then to not also harmonise insolvency law seems a little crazy,” said Gary Simmons, managing director of the high yield division at the Association for Financial Markets in Europe (Afme). “But this time there's been...