Restructuring and Insolvency in Europe: Policy Options in the Implementation of the EU Directive

Jose Garrido, Chanda DeLong, Amira Rasekh and Anjum Rosha

No 2021/152, IMF Working Papers from International Monetary Fund

Abstract: The Directive on Restructuring and Insolvency sets minimum standards for restructuring and certain insolvency matters, but its harmonization effect will be limited given multiple options for implementation, likely leading to divergent restructuring models in Europe. These options reveal different policy approaches to the regulation of restructuring and insolvency. The analysis in this paper aims to illustrate the breadth of the policy choices and their consequences for restructuring activity. States should carefully design restructuring procedures to avoid the negative economic effects of certain options that could undermine creditors’ rights or result in unpredictable outcomes, particularly in cross-border cases.

Keywords: restructuring; insolvency; European countries; EU Directive; policy option; insolvency in Europe; policy choice; implementation option; Solvency; Early warning systems; Corporate insolvency; Data collection; Europe (search for similar items in EconPapers)
Pages: 53
Date: 2021-05-27
New Economics Papers: this item is included in nep-eec and nep-law
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