Directive of the European Parliament and of the Council on restructuring and insolvency introduces preventive restructuring
Enterprises (debtors) will have the option to use preventive restructuring to forego bankruptcy and secure their viability while still maintaining total or at least partial control over their assets and day-to-day business operations. For the sake of negotiations regarding the restructuring plan, debtors are able to suspend enforcement of claims (with a few exceptions) by their creditors. The directive also introduces the obligation of Member States to provide a discharge of debt option for entrepreneurs with a debt discharge period not exceeding three years. Except for a few provisions, the directive must be transposed by 17 June 2021.
(Directive 2019/1023 of the European Parliament and of the Council of 20 June 2019)