Bulgarian Legislator Introduces New Preventative Restructuring Mechanism

The Bulgarian Parliament has recently adopted important amendments to the Law on Commerce, establishing, among others, a completely new tool for early restructuring for traders and commercial enterprises in financial distress – the so-called 'business stabilisation procedure'. The amendments concerning the stabilisation procedure will become effective as of 1 July 2017. The new procedure has been adopted as a result of the recommendations of the European Commission and the Council of the European Union for adoption of expedited debt restructuring and second chance frameworks, as well as in response to critics that state that Bulgaria is the only EU Member State whose legislation does not provide a nearly restructuring tool.