Many European countries did not offer such a valuable possibility outside of an insolvency. In many cases, insolvencies are value-destructive and lower the prospects of recovery for creditors (especially in cases where nothing more than a debt restructuring is required to prevent the insolvency). For that reason, the Directive made it mandatory for EU member states to offer a “preventive restructuring framework” for companies in a financially distressed situation.
In this newsletter, we provide you with a snapshot on the status of implementation of the EU Restructuring Directive in key European jurisdictions, as well as an overview of the new English Scheme of Arrangement.
Click here to access the full alert.
For further information, please reach out to your usual contact at BakerMcKenzie, or the specialists listed in the alert.