A relevant national law in the field of insolvency must be effective regarding reorganization in order to ensure the rescue of companies or the survival of debtors, despite the existence of debts that they are unable to overcome – at least immediately.
In addition, a relevant national insolvency law must offer the insolvency practitioners appointed in insolvency proceedings the means (but no less effective means) to combat fraud which may be caused by directors to the detriment of creditors or to draw the consequences from their incompetence or management failure.
