Insolvency law & restructuring

Recent Articles

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  26.09.2023

  United Kingdom

  FCA introduction of new regulatory gateway for firms which approve financial promotions

  BackgroundUnder section 21 of FSMA, currently any firm that is authorised under the Financial Services and Markets Act 2000 (FSMA), may approve a financial promotion by another unauthorised person. However, the government is concerned that the current framework is no longer sufficient and gives rise to risks. The FCA is particularly concerned with the promotion of high-risk investments and ‘Buy-Now Pay Later’ (BNPL) products. The FCA has seen examples of promotions that do not warn consumers of the risks, such as the taking on of debt, missed payments and other consequences. The FCA...

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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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  08.09.2023

  Czech Republic

  Preventive restructuring finally arrives in the Czech Republic—and it may affect you more than you realise

  After more than two years of delay, preventive restructuring has finally become available to companies in financial difficulties in the Czech Republic. Czech companies can now seek to restructure their troubled businesses outside formal insolvency proceedings with the help of new rules specifically designed to keep their viable business operating and to prevent insolvency. The new rules implement a dedicated EU directive on preventive restructuring that should have been implemented by member states by summer 2021.The lack of preventive restructuring protection had been widely criticised in the...

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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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