Insolvency rules cover a wide range of measures from early intervention before a company gets into serious difficulties, timely restructuring to ensure that viable business parts are preserved, liquidation of assets where companies cannot be otherwise saved and finally giving a second chance to honest entrepreneurs via discharge of debt.
There have been significantly divergent measures in the Member States to date. Many investors mention uncertainty over insolvency rules or the risk of lengthy or complex insolvency procedures in another country as a main reason for not investing or not entering into a business relationship outside their own country.
Increased convergence of insolvency and restructuring procedures would facilitate greater legal certainty and encourage the timely restructuring of viable companies in financial distress.
ILO-Newsletter, dd. 16 March 2018
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