European lift in restructuring proceedings
The European Parliament approved the text of the directive on the legal framework for preventive restructuring, second chance and measures to improve the efficiency of restructuring, insolvency and write off proceedings (COM/2016/0723). The directive is aimed at harmonising rules to improve the situation of companies in order to prevent their bankruptcy.
The implementation of the EU Directive will have an impact on the rules applicable to all restructuring operations.
The Directive introduces, among others, provisions enabling protection of a debtor against enforcement at the stage of filing an application until it is examined by the court, a guarantee of stability of contracts necessary to continue the current activity of the restructured company, as well as performing certain activities electronically, and not in paper form.
It is expected that the implementation of the directive will improve restructuring procedures and lead to changes expected by entrepreneurs undergoing restructuring or planning to do so.