European Preventive Restructuring

Christoph G. Paulus; Reinhard Dammann

doi:10.17104/9783406779350

Summary

Paulus

European Preventive Restructuring

The European Directive (Directive (EU) 2019/1023 of the European Parliament and of the Council of 20 June 2020 on preventive restructuring frameworks, on discharge of debts and disqualification, and on measures to increase the efficiency of procedures concerning restructuring, insolvency and discharge of debt) has to be transposed into national legislation by 26 June 2021.

The main features of the Directive are:

the obligatory making available of early warning systems;
the obligatory creation of an insolvency avoidance mechanism;
the determination of certain insolvency related officers’ duties;
the uniformisation of discharge rules among member states; and

measures to increase the national insolvency laws’ efficiency.

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Bibliographic data

Copyright year: 2022
ISBN-Print: 978-3-406-75350-3
ISBN-Online: 978-3-406-77935-0
Publisher: C.H.BECK Recht - Wirtschaft - Steuern, München
Series: Beck International
Language: English
Pages: 298
Product type: Edited Book

Titelei/Inhaltsverzeichnis No access Pages I - XVIII
1. 1. I. The goals of the Directive No access Pages 1 - 3
  2. II. Structure No access Pages 3 - 4
2. B. Historical development No access Pages 4 - 6
3. C. Relationship to EU 2015/848; cross-border issues No access Pages 6 - 7
4. D. Global positioning of the new instrument No access Pages 7 - 9
Directive (EU) 2019/1023 of the European Parliament and of the Council No access Pages 9 - 35
1. 1. A. Purpose No access Pages 36 - 37
  2. 1. I. Preventive restructuring frameworks No access
    2. II. Proceedings leading to a discharge of debts No access
    3. III. Measures to increase the efficiency of procedures concerning the restructuring, insolvency and discharge of debt No access
  3. C. Group of companies No access Pages 46 - 46
  4. D. Excluded classes of debtors No access Pages 46 - 48
  5. E. Excluded categories of claims No access Pages 48 - 49
  6. F. Possibility to limit preventive restructuring framework to financial restructuring? No access Pages 49 - 50
  7. G. The size of the debtors No access Pages 50 - 50
  8. 1. I. Cross-border aspects of preventive restructurings No access
    2. II. The relationship between the Directive and the EIR 2015 No access
    3. III. The scope of the EIR 2015 No access
    4. IV. The scope of the EIR 2015 in light of the Directive No access
    5. V. The consequence of the application of the EIR 2015 to restructuring frameworks No access
    6. VI. The advantage of the two-step model No access
    7. VII. The application of Brussels Ia No access
    8. VIII. The relationship between the Directive and the Transfer Directive No access
2. 1. A. Purpose of the norm (Paulus) No access Pages 60 - 61
  2. 1. I. lit. 1: Restructuring (Dammann) No access
    2. II. lit. 2: Affected parties (Veder) No access
    3. III. lit. 3: Equity holder (Garcimartin) No access
    4. IV. lit. 4: Stay of individual enforcement actions (Richter) No access
    5. V. lit. 5: Executory contract (Richter) No access
    6. VI. lit. 6: Best-interest-of-creditors test (Veder) No access
    7. VII. lit. 7: New financing (Lynch Fannon) No access
    8. VIII. lit. 8: Interim financing (Lynch Fannon) No access
    9. IX. lit. 9: Entrepreneur (Paulus) No access
    10. X. lit. 10: Full discharge of debt (Paulus) No access
    11. XI. lit. 11: Repayment plan (Paulus) No access
    12. XII. lit. 12: Practitioner in the field of restructuring (Veder) No access
  3. 1. I. Insolvency No access
    2. II. Likelihood of insolvency No access
    3. III. Micro, small and medium-sized enterprises (‘SMEs”) No access
3. 1. A. Purpose of the norm No access Pages 78 - 79
  2. B. Duty of Member States to establish early warning tools No access Pages 79 - 79
  3. C. Should early warning tools also apply to consumers etc.? No access Pages 79 - 80
  4. 1. I. Alert mechanisms No access
    2. II. Advisory services No access
    3. III. Directors’ duties to act upon an early warning No access
  5. E. Information to employee representatives on early warning tools No access Pages 83 - 83
  6. F. Easy accessible online information about early warning tools No access Pages 83 - 83
  7. G. Support to employees’ representatives No access Pages 83 - 85
1. 1. 1. A. Purpose No access
    2. B. Structure No access
    3. C. Availability of preventive restructuring frameworks No access
    4. D. Suspicious debtors No access
    5. E. Viability test No access
    6. F. Number of times No access
    7. G. Procedural aspects No access
    8. H. Initiative No access
2. 1. 1. A. Purpose of the norm No access
    2. B. Debtor-in-possession No access
    3. C. Appointment of a practitioner in the field of restructuring No access
    4. D. Practitioner in the field of restructuring No access
  2. 1. A. General comments No access
    2. B. Specific parameters of the stay No access
    3. C. The debtor’s powers and duties during the stay No access
  3. 1. A. General comments No access
    2. B. Specific rules related to the stay No access
3. 1. 1. A. Purpose of the norm No access
    2. B. Minimum content of the plan No access
    3. C. Checklists No access
    4. D. Third-party releases No access
  2. 1. A. Introduction No access
    2. B. Preliminary remark: the concept of ‘affected parties’ No access
    3. C. Submission of restructuring plans, Article 9 par. 1 No access
    4. D. Voting rights, Article 9 par. 2 and 3 No access
    5. E. Classes of creditors, Article 9 par. 4 and 5 No access
    6. F. Voting Majorities, Article 9 par. 6 No access
    7. G. Agreement with the requisite majority, Article 9 par. 7 No access
  3. 1. A. Purpose No access
    2. B. Need of confirmation No access
    3. C. Conditions No access
    4. D. Viability and Insolvency tests No access
    5. E. Procedure No access
  4. 1. A. Purpose of the norm No access
    2. B. Cross-class cram-down No access
    3. C. Request for confirmation by the debtor or with the debtor’s agreement No access
    4. D. Conditions for confirmation of a non-consensual plan No access
    5. E. Practitioner in the field of restructuring No access
  5. 1. A. Purpose No access
    2. B. Structure No access
    3. C. Definition of equity holders No access
    4. D. Alternatives No access
  6. 1. A. Purpose No access
    2. B. Emergence of Article 13 in the legislative development of the Directive No access
    3. C. Purpose No access
    4. D. Interface with other EU employment legislation No access
    5. E. Alternative restructuring proposals, frameworks and approaches No access
  7. 1. A. Purpose No access
    2. B. The valuation of the business as a going concern No access
    3. C. The liquidation value of the business No access
    4. D. Judicial valuation only where the plan is challenged No access
    5. E. The procedure to lodge a challenge No access
    6. F. The appointment of experts No access
    7. G. Best practice for the transposition of Article 14 of the Directive No access
  8. 1. A. The effects of restructuring plans No access
  9. 1. A. Purpose No access
    2. B. Appeal No access
4. 1. 1. A. Introduction No access
    2. B. History No access
    3. C. Purpose No access
    4. D. Protection for new and interim financing No access
    5. E. Priority for new and interim financing No access
    6. F. Conclusion No access
  2. 1. A. Purpose and background No access
    2. B. The scope of Article 18: introduction No access
    3. C. The scope of the Article: specific provisions No access
    4. D. Implementation of Article 18 – The role of the judiciary and or administrative authority No access
    5. E. Protection from actions or measures which render the transactions void, voidable or unenforceable No access
5. 1. 1. A. Purpose of Article 19 and of the implementing Member States’ rules No access
    2. B. Ambit of application No access
    3. C. Duties of directors as one of the minimum standards for preventive restructuring procedure No access
    4. D. The long way to Article 19 No access
    5. E. Issues to be imposed on directors by Member States as a minimum No access
1. 1. A. Purpose No access Pages 249 - 250
  2. B. Access to full discharge, par. 1 No access Pages 250 - 251
  3. C. Proportionality, par. 2 No access Pages 251 - 252
  4. D. Fresh start, par. 3 No access Pages 252 - 252
2. 1. A. Purpose No access Pages 253 - 253
  2. B. Start of discharge period, par. 1 No access Pages 253 - 254
  3. C. End of discharge period, par. 2 No access Pages 254 - 255
  4. D. Permissible side effect, par. 3 No access Pages 255 - 255
3. 1. A. Purpose of the norm No access Pages 255 - 256
  2. B. Article 22 concerns entrepreneurs No access Pages 256 - 257
  3. C. Which kinds of disqualifications must cease according to Article 22 No access Pages 257 - 258
  4. D. Disqualifications concerning specially supervised activities No access Pages 258 - 258
  5. E. When must a disqualification cease No access Pages 258 - 259
  6. F. No requirement for additional procedures to cease a disqualification No access Pages 259 - 259
4. 1. A. Purpose of the norm No access Pages 261 - 261
  2. B. Entrepreneurs that have acted dishonestly or in bad faith No access Pages 261 - 262
  3. 1. I. Violation of obligations under the repayment plan etc No access
    2. II. Failure to comply with information or cooperation duties No access
    3. III. Abusive applications for discharge No access
    4. IV. Limitation of further applications for discharge No access
    5. V. The cost of the procedure leading to the discharge of debt is not covered No access
    6. VI. Safeguarding the balance between the rights of the debtor and the rights of one or more creditors No access
  4. 1. I. Longer discharge period in order to preserve the entrepreneur’s business No access
    2. II. Longer discharge period where the entrepreneur’s main residence is not realised No access
  5. E. Exclusion of certain categories of debt from the discharge No access Pages 266 - 267
  6. 1. I. Professions with specific rules on ethics, reputation or expertise No access
    2. II. Professions dealing with the management of the property of others No access
    3. III. Par. 5 apply despite a discharge No access
    4. IV. Par. 5 merely concerns the disqualification period No access
  7. G. Disqualifications ordered by other authorities No access Pages 268 - 269
5. 1. A. General comments No access Pages 270 - 271
  2. 1. I. Inseparable debts (Article 24 par. 1) No access
    2. II. Separable debts (Article 24 par. 2) No access
1. 1. A. Purpose of Title IV No access Pages 273 - 274
  2. 1. I. Content and reasons of its text No access
    2. II. Measures regarding judicial and administrative authorities, when dealing with procedures concerning restructuring, insolvency and discharge of debt (Article 25 par. 1, lit. a) No access
    3. III. Measures regarding procedures concerning restructuring, insolvency and discharge of debt (Article 25 par. 1, lit. b) No access
  3. C. Limits to the application of measures set by Article 25 No access Pages 277 - 277
  4. 1. I. Measures set by Article 25, par. 1, lit. a No access
    2. II. Measures set by Article 25, par. 1, lit. b No access
2. 1. A. Purpose of the norm No access Pages 279 - 280
  2. B. Training and expertise No access Pages 280 - 281
  3. C. Eligibility No access Pages 281 - 281
  4. D. Appointment, removal and resignation No access Pages 281 - 282
  5. E. Objections No access Pages 282 - 282
  6. F. Best Practices No access Pages 282 - 283
3. 1. A. Purpose of the norm No access Pages 283 - 283
  2. B. Supervision No access Pages 283 - 284
  3. C. Codes of conduct No access Pages 284 - 285
  4. D. Remuneration No access Pages 285 - 285
4. Article 28. Use of electronic means of communication (Paulus) No access Pages 285 - 287
1. 1. A. General comments No access Pages 288 - 289
  2. 1. I. A dataset of restructurings and insolvencies (Article 29 par. 1) No access
    2. II. Repeat filers (Article 29 par. 2) No access
    3. III. Further data to be collected voluntarily (Article 29 par. 3) No access
    4. IV. Breakdowns of the data collected (Article 29 par. 4) No access
    5. V. Working with samples (Article 29 par. 5) No access
    6. VI. Reporting periods, the communication form and presentation of the national data (Article 29 par. 6 to 8) No access
2. Article 30. Committee procedure (Paulus) No access Pages 291 - 293
1. Article 31. Relationship with other acts and international instruments (Paulus) No access Pages 293 - 294
2. Article 32. Amendment of Directive (EU) 2017/1132 (Paulus) No access Pages 294 - 294
3. Article 33. Review clause (Paulus) No access Pages 294 - 295
4. Article 34. Transposition (Paulus) No access Pages 295 - 296
5. Article 35. Entry into force No access Pages 296 - 297
6. Article 36 No access Pages 297 - 298

Bibliography (9 entries)

ï»¿Selected Bibliography Open Google Scholar doi.org/10.17104/9783406779350
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