New toolbox, new questions by Professor Dr Dominik Skauradszun and Walter Nijnens, LL.M.

The brand new Directive on Preventive Restructuring Frameworks (EU No 2019/1023 of 20 June 2019) presents a promising toolbox for restructuring debtor companies, containing features such as a very early starting point, the debtor-in-possession approach, a flexible stay, the restructuring plan’s adoption out-of-court and the cross-class cram-down.

However, all that glitters is not gold. Therefore, this overview points out challenges regarding two tools that have not yet been sufficiently reviewed in the legal literature. The first is about the restriction of equity holders’ rights, the second about the stay. Furthermore, the paper demonstrates the problems arising from the question of international jurisdiction over the new frameworks.