An EU Preventive Restructuring Framework: A Hole in One?

Abstract

While traditionally (continental) Europe has not been known for a particularly debtor- or restructuring-friendly insolvency practice, in recent decades, important reforms were implemented that would foster restructurings in Europe. In this article, we comparatively look at the status quo of insolvency and restructuring practices in five different European countries (Denmark; France; Germany; the Netherlands; and the United Kingdom). We place our observations into the context of the EU Preventive Restructuring Directive 2019. The Directive leaves ample room for implementation by Member States, from a watered-down restructuring tool with high access threshold to a pre-insolvency, debtor-friendly US-style restructuring procedure.

Keywords: International Insolvency Law; Directive Preventive Restructuring; Harmonization; Restructuring; Comparative Law