Europe has struggled mightily during the last several years to triage a long series of critical blows to the economies of the 27 countries that comprise the European Union, as well as the

collective viability of eurozone economies. Here we provide a snapshot of some recent developments relating to insolvency and restructuring in the EU.

This Q&A focuses on the need to modernise the EU Insolvency Regulation to facilitate the restructuring of businesses in financial difficulty.

Questions include: why do the current rules need updating, what is the impact of the insolvency rules on the economy, how many businesses are affected and what are the next steps?

How has the bankruptcy and restructuring landscape changed in the wake of the global financial crisis?

Recent Developments

Europe has struggled mightily during the last several years to triage a long series of critical blows to the economies of the 27 countries that comprise the European Union as well as the collective viability of euro-zone economies. Here we provide a snapshot of some recent developments relating to insolvency and restructuring in the EU.

Overview

The tenth anniversary of the EU Council Regulation on insolvency proceedings (EC No 1346/2000) has arrived amidst wide debate surrounding whether the regulation remains valid and current in its existing form. The European Commission recently launched a consultation examining the current insolvency regime in Europe.

Cadwalader partner Richard Nevins discusses developments in European restructurings with Doug Mintz, Restructuring Review's Co-Editor-in-Chief and Cadwalader Special Counsel.

Europe has struggled mightily during the last several years to triage a long series of critical blows to the economies of the 27 countries that comprise the European Union, as well as the collective viability of eurozone economies. Here we provide a snapshot of some recent developments relating to insolvency and restructuring in the EU.

Poland – protective and secondary insolvency proceedings can run in parallel in different Member States

Secondary insolvency proceedings may be begun in the member state where the debtor has an establishment, when main proceedings with a protective purpose are already pending in another member state, according to the ECJ.

Protective proceedings (known as ‘sauvegarde’ proceedings) are those where the debtor proves that he is not insolvent but is faced with difficulties, financial and otherwise, that he cannot overcome.