European Update… Continued! by Myriam Mailly

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’).

With that text (OJEU L 172 of 26.06.2019, p. 18-55), the European Union aimed at disseminating in all EU Member States modern and streamlined rules that should facilitate restructuring, give entrepreneurs a second chance and improve the efficiency of restructuring, insolvency and debt discharge procedures. In other words, among other provisions, the Directive would allow viable businesses in distress to be rescued and honest but bankrupt individuals to be given a second chance.