Coordinating the Preventive Restructuring Directive and the Recast European Insolvency Regulation by Lorenzo Stanghellini and Andrea Zorzi

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”). It cites the Recast EIR in various recitals and articles, but expressly takes into account the possibility that the restructuring framework which a Member State designs or selects from the existing ones in order to implement the Directive, will not be a procedure listed in Annex A of the Recast EIR, thereby leaving the Member States a freedom that, if fully used, may raise thorny issues.