The EU proposal for harmonisation of EU insolvency law

Once enacted, this will be among the most significant developments in EU insolvency law in recent years, with implications for corporate boards, lenders, funds, creditors, and insolvency professionals across the EU.

It is set to reshape restructuring and enforcement strategies by harmonizing core areas, including:

• avoidance actions (with calibrated knowledge standards, hardening periods, and proportionate carve-outs)
• asset tracing (with BARIS-enabled access to bank-account and beneficial-ownership data for IPs)
• EU-wide pre-packaged going-concern sales (supporting “free and clear” transfers, including employment aspects)
• a duty on directors to request the opening of insolvency proceedings (within three months of the onset of insolvency)
• creditors’ committees
• standardized national key-information factsheets.

Our publication below highlights the key aspects of the draft EU harmonisation directive.