European Commission Proposals On Preventative Restructuring

On 22 November 2016 the European Commission published its proposal for a draft directive on preventative restructuring frameworks ("Draft Directive"). Having reviewed the proposal, it is clear that the terms of the Draft Directive may have a significant impact on the examinership process in Ireland.

Reasons behind the proposal

The Draft Directive follows the Commission's 2014 recommendation that Member States introduce into national legislation provisions which support greater business turnaround. A review of that Recommendation by the Commission found that the levels of implementation were quite low in most member states.

Given the aims of the European Union in the pursuit of the common market, the significant divergence in national insolvency legislation is regarded as an implement to progress.