Currently Proposal for a Directive of the European Parliament and of the Council harmonising certain aspects of insolvency law (document COM(2022) 702 final of 7.12.2022) is under European Union legislation proceedings.
- Authors of this news drafted positions towards the Proposal – partially on behalf of EIP Association (European Insolvency Practitioners) and INSO Section of the Allerhand Institute.
- In the positions – statements it has been outlined that some areas covered by the Proposal may be amended, like:
- transaction avoidance with regard to the possibility of declaring voidable by the Judge-Commissioner in simplified procedure;
- resignation from simplified winding-up without insolvency practitioners,
- more focus on ranking of claims within insolvency proceedings and
- properly addressing issue of remuneration for participance in Creditors’ Committees, aimed to increase participation from creditors side.
- The Proposal may also be enriched by setting a common standard for the professional development of insolvency practitioners as well as linking insolvency / bankruptcy with capital markets regulations and distressed M&A – also within pre-pack proceedings.
- Moreover, lower costs of credit and easier access thereto may be raised as rational behind the proposed changes.
- The accent may also be put on insolvency practitioners within pre-pack and more generally, granting them more powers, since they are well-trained, experienced and very close to enterprises in distress or other financial difficulties.
Authors: Paweł Kuglarz and Mateusz Kaliński, LL.M.