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.

  1. 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.
  2. In the positions – statements it has been outlined that some areas covered by the Proposal may be amended, like:
    1. transaction avoidance with regard to the possibility of declaring voidable by the Judge-Commissioner in simplified procedure;
    2. resignation from simplified winding-up without insolvency practitioners,
    3. more focus on ranking of claims within insolvency proceedings and
    4. properly addressing issue of remuneration for participance in Creditors’ Committees, aimed to increase participation from creditors side.
  3. 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.
  4. Moreover, lower costs of credit and easier access thereto may be raised as rational behind the proposed changes.
  5. 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.

More from Tatara & Partners Restructuring & Insolvency Law Firm