The effectiveness and efficiency of inter-state debt recovery efforts was targeted at improving the EU regulation on Monday, which was proposed by the European Commission (EB) in 2012. In May 2015, the Union adopted the now-in-progress proposal that was complemented by an Early Restructuring Directive in November last year. The new rules are affecting the restructuring of companies and the recruitment of creditors – written in the EB’s statement.
The Regulation resolves current conflicts of law and provides unified rules throughout the EU. Hopefully, these changes may increase investment attractiveness and promote decent businesses.
Such an innovation is that companies are no longer able to move to a new country for the purpose of more favorable bankruptcy proceedings. All suspicious cases will be thoroughly investigated by the courts.
In the case of cross-border cases, nowadays, more modernized restructuring procedures can be used, which, for example, help to raise money from debtors in other EU countries.
Link the records
It is also a change that the records on individual insolvency proceedings should be linked to the Member States by 2019. The measure helps to obtain information on insolvency proceedings in other EU countries.