Part 26A European Restructuring Regime
At the outbreak of the Covid-19 pandemic, European lawmakers raced to modify their restructuring regime in response to the crisis. On March 20, 2020, independent research group the Conference of European Restructuring and Insolvency Law (CERIL) called on all EU member states to suspend the duty of directors to file for insolvency proceedings based on over-indebtedness and inability to pay. It also urged governments to offer interim financing to struggling businesses, “hibernation” periods for small businesses and support for entrepreneurs and their staff.
In the months that followed, jurisdictions across the Continent mobilized practitioners, academics and legislators to introduce a host of innovative changes to their restructuring regimes, the impact of which are now beginning to be seen in the decisions being handed down by European courts. We have also seen early indications of the types of challenges that could face the cross-border recognition of English law decisions in a post-Brexit world.
Read our series of Part26A posts here: