On 7 December 2022, the EU Commission issued a proposal for a directive harmonising certain aspects of insolvency law (the Draft Directive). One key aspect of this Draft Directive is the regulation of pre-pack proceedings.
In the absence of any currently existing pre-pack procedure, this means that such a procedure will ultimately need to be introduced in Luxembourg law. Furthermore, pre-pack sales may have a more immediate future through Luxembourg Bill No. 6539 A, which entirely revamps Luxembourg insolvency law and should be passed in the near future.
A “pre-pack” is a sale of all or part of a distressed company’s business or assets, negotiated before the company enters a formal insolvency process and executed by the appointed insolvency practitioner immediately after the insolvency process begins.
In the first part of this article, we dealt briefly with the European Commission’s proposals to further strengthen and ensure the proper application of the existing common framework for managing bank failures, through the publication of a proposed package amending the framework on banks’ crisis management and deposit insurance (“CMDI”) on 18 April 2023.
On 7 December 2022, the European Commission published a proposal for a directive for the harmonisation of certain aspects of insolvency laws across EU member states. One of the key elements of this proposal is the introduction of harmonised pre-pack proceedings aimed at increasing the efficiency of business sales in insolvency proceedings.
The ongoing war and full-scale russian invasion have significantly impacted Ukraine’s legal system and economic landscape. However, despite the challenging circumstances, Ukrainian courts have continued to administer justice, ensuring the protection of constitutional rights.
The EU Commission has presented a draft directive on the mandatory inclusion of a "pre-pack proceeding" in national insolvency laws.
On 7 December 2022, the European Commission published a draft directive harmonising certain aspects of insolvency law with the aim of facilitating distressed M&A by reducing legal uncertainties in cross-border transactions.
The lack of harmonised insolvency laws has long been regarded as one of the greatest obstacles to the free movement of capital in the EU in general and to cross-border investments, insolvency proceedings and restructuring in particular.
COMPETITION LAW
Daria Plakhova Freshville, Jenna Burton, Abby Stanglin, Richard Bowles, Nicholas Peck and Warren Feldman, Nardello & Co
This is an extract from the 2023 edition of GIR's Europe, Middle East and Africa Investigations Review. The whole publication is available here.
IAIS launches climate risk training materials for insurance supervisors
According to a press release published on April 5th, 2023, the International Association of Insurance Supervisors (IAIS) and the Financial Stability Institute jointly launched new online training materials on climate risk for insurance supervisors.