11 October 2018
Today, the European Council agreed its position on the new draft European Restructuring Directive.
Philip Hertz, Global Head of the Restructuring and Insolvency Team at Clifford Chance comments: "Today's announcement by the Council is a step closer towards a more flexible approach to restructuring across Europe. The Restructuring Directive aims to provide greater opportunities for businesses in distress to restructure at an earlier stage. It promotes a more level playing field across Europe by mandating debtor in possession style procedures, including a stay against enforcement action and more flexible restructuring mechanisms, including the ability to cram down creditors across classes. Reinhard Dammann, partner in our restructuring and insolvency team in Paris also notes: "This represents a significant development in the European restructuring landscape and once finalised, will be a welcome step in giving debtors a second chance and preventing formal insolvencies where there are viable alternatives."
Reinhard acted as an expert adviser to the European Commission, together with Tomas Richter, of Counsel from our Prague office. Reinhard also advised the European Parliament on the draft Directive.