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ARTICLE · 24 NOVEMBER 2022

New Insolvency Laws: A Second Chance For Entrepreneurs

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It is often said that failure is an essential step of learning. Business failure is an inherent process of economic activity so much so that it is estimated that some 200,000 firms...

MaltaInsolvency/Bankruptcy/Re-Structuring
Davinia Cutajar
Davinia Cutajar
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It is often said that failure is an essential step of learning. Business failure is an inherent process of economic activity so much so that it is estimated that some 200,000 firms in the European Union go bankrupt annually in the European Union. Around half of new operations fail to get through the first five years, and bankruptcies usually account for 15% of such failures.

Yet from a context of capitalising the value of the firm's assets and protecting jobs, an enterprise which is in financial trouble might actually be more valuable as a going concern than if it is liquidated. This backs legislation which supports entrepreneurs into getting a second chance while improving the efficiency of restructuring, insolvency, and debt discharge procedures.

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