Belgium Proceeds With Insolvency Reforms With EU Restructuring Directive Implementation

The European Union has recognised the need for harmonised insolvency laws across its member states and has taken a significant step forward with the introduction of the new EU Restructuring Directive ((EU) 2019/1023).

This directive aims to establish a common framework for insolvency proceedings, thereby enhancing cross-border cooperation and safeguarding the interests of all stakeholders involved.

On 1 September 2023, the Law of 7 June 2023 transposing the directive entered into force which amended Book XX of the Code of Economic Law. The new law not only implements the directive but also adds a number of new features. It primarily focuses on changing the rules on a number of existing insolvency proceedings, for both out-of-court proceedings and judicial proceedings.