Environmental protection and sustainable development are nowadays a global concern to such an extent that the question of the link between environment and insolvency must be raised.

Indeed, a company facing a pre-insolvency or an insolvency procedure may cause damages to the environment or risk causing damages to the environment in two scenarios.

The EU adopted on 20 June 2019 the Directive (EU) 2019/1023 of the European Parliament and of the Council on preventive restructuring frameworks, on discharge of debt and disqualifications, and on measures to increase the efficiency of procedures concerning restructuring, insolvency and discharge of debt, and amending Directive (EU) 2017/1132 (hereafter the ‘Directive’).

An international multidisciplinary approach to combatting fraud in insolvency is a practical necessity. Where cases are multi-jurisdictional, it is essential to use innovative approaches with input across several disciplines. The INSOL Europe Anti-Fraud Forum (“AFF”) was established with this as one of its aims. This working group currently has 69 members spanning 22 jurisdictions, all of whom specialise in using insolvency processes to assist with the tracing and recovery of assets.

Issues arising from coordination among possible cross-border procedures seem underestimated in the Directive on Preventive Restructuring Frameworks (the “Directive”). The Directive purports to be almost indifferent to the Recast European Insolvency Regulation (“Recast EIR”).

The brand new Directive on Preventive Restructuring Frameworks (EU No 2019/1023 of 20 June 2019) presents a promising toolbox for restructuring debtor companies, containing features such as a very early starting point, the debtor-in-possession approach, a flexible stay, the restructuring plan’s adoption out-of-court and the cross-class cram-down.

However Brexit evolves – something that remains impossible to predict – cross-border restructuring and insolvency in and between the UK and European countries will continue to develop. The question is, what will that development look like?

The recently adopted Directive on restructuring and insolvency (the ‘Directive’) seems to indicate that IT might help running proceedings more efficiently. For example, in connection with the selection of practitioners, the Directive’s Recital 88 reads:

“Member States should not be prevented from providing for a practitioner to be selected by other methods, such as random selection by a software programme, provided that it is ensured that in using those methods due consideration is given to the practitioner's experience and expertise.”

In a global financial environment, insolvency office-holders will often need to look beyond their home jurisdictions in order to undertake their principal function of getting in and realising assets.

Early Warning Denmark (‘EWD’) is a system providing impartial and confidential assistance to businesses in distress and heading towards insolvency, at no cost.

On 6 June 2019 the European Council formally adopted the directive on preventive restructuring frameworks, on discharge of debt and disqualifications, and on measures to increase the efficiency of procedures concerning restructuring, insolvency and discharge of debt, and amending Directive (EU) 2017/1132 (directive on preventive restructuring frameworks).