EU Restructuring and Insolvency Harmonization

Summary

A proposal to harmonize EU rules on business restructuring and insolvency to support viable companies and provide a 'second chance' for entrepreneurs.
10 03.07.2019
Other
economy
finance
transport
labour law
social policy
public administration
business and competition
employment and working conditions
information technology and data processing

Key points

  • The directive aims to create a more unified European market by standardizing how businesses handle financial distress and insolvency.
  • Viable companies should have access to early restructuring frameworks to prevent total liquidation and job losses.
  • A temporary pause on creditor actions is allowed for up to four months, with potential extensions.
  • Honest entrepreneurs can receive a full discharge of their debts within a five-year period.
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