The EU Preventive Restructuring Framework: in Extra Time?

SSRN Electronic Journal

Abstract

In 2019, the EU adopted the Preventive Restructuring Directive to introduce harmonisation enabling viable enterprises and entrepreneurs that are in financial difficulties to have access to effective national preventive restructuring frameworks a so that they can continue operating. A harmonised standard to deal with distressed debt and allow for early restructurings was seen as a key component for a competitive and integrated European capital market. In this context, the authors came together in a comparative piece entitled 'Restructuring Europe-The EU Preventive Restructuring Framework: a Hole in One?' that mapped selected jurisdictions' (Denmark, France, Germany, the Netherlands and the United Kingdom) preventive restructuring frameworks against the background of the Directive's objectives and provisions. Eighteen months later and as the implementation period is coming to an end, this article revisits those findings and offers a comparative update on the implementation process. This article also includes additional perspectives on the impact that recent events, such as the COVID-19 Pandemic, had and are having on the nature and progress of the Member States towards the introduction and improvement of preventive restructuring frameworks.

Authors 7

1. Jennifer Gant

   University of Derby

   Affiliation as printed

   University of Derby - School of Law and Criminology

2. Gert‐Jan Boon Aachen

   Leiden University

   Affiliation as printed

   Leiden University - Leiden Law School

   Leiden University - Leiden Law School, P.O. Box 9520, 2300 RA Leiden, NL-2300RA, Netherlands

3. David Christoph Ehmke
   Affiliation as printed

   Independent

4. Emilie Ghio

   University of Edinburgh

   Affiliation as printed

   University of Edinburgh

   University of Edinburgh, Edinburgh, Great Britain

5. Line Herman Langkjær

   Aarhus University

   Affiliation as printed

   Aarhus University – Aarhus BSS, Department of Law

   Aarhus University – Aarhus BSS, Department of Law, Bartholins Allé 16, Aarhus C, 8000, United States

   Aarhus University, Aarhus BSS, Department of Law, DK

6. Eugenio Vaccari corresponding

   Royal Holloway University of London

   Affiliation as printed

   Royal Holloway, University of London

   Royal Holloway, University of London, Egham hill, Egham, TW20 0EX, United Kingdom

7. Paul J. Omar

   De Montfort University

   Affiliation as printed

   De Montfort University - Faculty of Business and Law

   De Montfort University - Faculty of Business and Law, United Kingdom