Rely on the most comprehensive, up-to-date legal content designed and curated by lawyers for lawyers
Work faster and smarter to improve your drafting productivity without increasing risk
Accelerate the creation and use of high quality and trusted legal documents and forms
Streamline how you manage your legal business with proven tools and processes
Manage risk and compliance in your organisation to reduce your risk profile
Stay up to date and informed with insights from our trusted experts, news and information sources
Access the best content in the industry, effortlessly — confident that your news is trustworthy and up to date.
With over 30 practice areas, we have all bases covered. Find out how we can help
Our trusted tax intelligence solutions, highly-regarded exam training and education materials help guide and tutor Tax professionals
Regulatory, business information and analytics solutions that help professionals make better decisions
A leading provider of software platforms for professional services firms
In-depth analysis, commentary and practical information to help you protect your business
LexisNexis Blogs shed light on topics affecting the legal profession and the issues you're facing
Legal professionals trust us to help navigate change. Find out how we help ensure they exceed expectations
Lex Chat is a LexisNexis current affairs podcast sharing insights on topics for the legal profession
Printer Friendly Version
Original Report: Report on a new approach to business failure
Insol Europe is an independent organisation of lawyers, accountants, academics and judges specialising in insolvency law. It supports research, procures international co-operation and assists at developing standards in insolvency law and practice.
The study was commissioned to provide information on restructuring mechanisms already available in all member states, their main features, effective use, rate of success, cost to the debtor and length.
It provides the facts collected across the 28 member states in an Annex, and the report provides an analysis of this data, together with recommendations of the experts for an early preventive restructuring mechanism.
Different kinds of insolvency proceedings
The uniform and/or shared definition of ‘pre-insolvency proceedings’ poses a number of problems due to the differences and divergencies in the domestic laws of the member states.
Areas covered by the study include the following:
• pre-insolvency proceedings—these are opened because the debtor is in financial difficulties but without any prior insolvency test, and involve the applicability of special rules of insolvency law. They include:
—confidential procedures, which will usually be proceedings in which the debtor tries to reach agreement with the creditors with the assistance of an expert or insolvency practitioner
—public pre-insolvency proceedings in which a supervisor, administrator or liquidator is appointed or which take place under the supervision of a court and which are opened without an insolvency test. The opening of these proceedings is public
• full insolvency proceedings—opened after the insolvency test has been carried out and the court has determined that the debtor is insolvent. They are either ‘debtor-in-possession’ (DIP) proceedings or proceedings conducted by a liquidator
• DIP proceedings—pre-insolvency proceedings or full insolvency proceedings in which the debtor is not divested of the assets but administers his or her assets under supervision by a court or a court appointed supervisor. They are designed to avoid liquidation and facilitate restructuring.
The report also outlines recommendations for preventive pre-insolvency proceedings, along with supporting measures. In order to assure the effectiveness of an early rescue mechanism, it is imperative to implement measures which ensure that trading of the debtor can continue unimpaired. This applies in particular to confidential proceedings.
0330 161 1234