Entry in Oxford Business Law Blog.
The European Commission has made a significant move to harmonise parts of Member States’ insolvency laws. It has proposed a directive on pre-insolvency ‘preventive restructuring frameworks’ – the draft Restructuring Directive (RD). If adopted, the RD would force the Member States to design restructuring proceedings that conform to the directive’s stipulations. The European Commission hopes that this would lower financing costs for European firms and give SMEs, in particular, access to local and efficient restructuring regimes.