Corporate Recovery & Insolvency

Recent Articles

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  13.09.2023

  Romania

  Romania’s current insolvency framework

  In light of the European Commission’s recent proposal that an EU Directive be issued regulating insolvency and pre-pack proceedings, Romania’s insolvency and bankruptcy legal framework does not currently provide rules on pre-packs or on the preparation of a sale of a debtor's assets before insolvency proceedings are formally opened. Such preparation is possible and even considered by creditors, but in practice it is far more usual for the proceedings to be used for the sale of the performing assets or parts of the businesses rather than to prepare the entire business for sale before...

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  13.09.2023

  Bulgaria

  Pre-pack insolvency sale in Bulgaria with a view of the proposed new directive harmonising certain aspects of insolvency law

  The pre-pack insolvency sale is not currently regulated under Bulgarian law.The Bulgarian law currently regulates the implementation of a recovery plan as a stage of opened insolvency proceedings, such recovery plan may provide for the sale of the business as a going concern, or the sale of a business as a going concern prior to opening insolvency proceedings. The recovery plan is described in more detail below.The Bulgarian law also regulates the stabilisation procedure, which may be opened in respect of a business that is not insolvent but is in immediate danger of insolvency and has the possibility...

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  06.09.2023

  Ukraine

  Pre-Pack Proceeding in Ukraine

  Currently, Ukrainian legislation does not provide for a separate “pre-pack proceeding” as outlined in the draft EU directive for harmonising insolvency law (“Directive Proposal”). However, selling a business is a legally feasible option under the Ukrainian Bankruptcy Code and related laws, both in a pre-bankruptcy phase and during bankruptcy proceeding.During the pre-bankruptcy phase, which involves pre-bankruptcy rehabilitation measures in relation to a debtor, parties can agree, among other things, to sell the debtor’s assets and settle creditor claims through asset...

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  06.09.2023

  Poland

  Pre-pack insolvency sales in Poland and the EU draft Directive

  In Poland, pre-pack insolvency sales have been available since 1 January 2016. The legal framework regulating pre-pack insolvency sales was introduced into Polish insolvency law as part of a major reform of insolvency legislation that was aimed at preserving the value carried by the assets of insolvent entities and to ensure higher satisfaction for creditors.Indeed, pre-pack makes it possible to sell a part or all of the insolvent debtor’s business or certain assets carrying a significant value and use the proceeds towards repayment of the bankrupt entity’s debts, avoiding standard...

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  31.08.2023

  Europe

  Pre-Pack re­or­gan­isa­tion in Serbia and Montenegro: An overview

  In response to the proposal by the EU Commission on 7 December 2022 that an EU Directive be issued to harmonise certain aspects of insolvency law, this article provides a look into one of the main topics of the draft directive – pre-pack reorganisation proceedings as regulated in Serbia, Montenegro, and Bosnia and Herzegovina, which are candidate countries for accession to the EU.Pre-pack reorganisation is a method within bankruptcy proceedings designed to maintain a struggling company's administrative structure, streamline the process of settlement of creditors' claims, and minimise disruptions...

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  31.08.2023

  Europe

  Pre-Pack re­or­gan­isa­tion in Bosnia and Herzegovina: An overview

  In response to the proposal by the EU Commission on 7 December 2022 that an EU Directive be issued to harmonise certain aspects of insolvency law, this article provides a look into one of the main topics of the draft directive – pre-pack reorganisation proceedings as regulated in Serbia, Montenegro, and Bosnia and Herzegovina, which are candidate countries for accession to the EU.Pre-pack reorganisation is a method within bankruptcy proceedings designed to maintain a struggling company's administrative structure, streamline the process of settlement of creditors' claims, and minimise disruptions...

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