The European Parliament and Council have agreed on a directive to harmonize key aspects of EU insolvency law. The directive introduces targeted minimum standards aimed at reducing internal-market frictions and improving efficiency, predictability, and recoveries in cross-border cases.
Once enacted, this will be among the most significant developments in EU insolvency law in recent years, with implications for corporate boards, lenders, funds, creditors, and insolvency professionals across the EU.
It is set to reshape restructuring and enforcement strategies by harmonizing core areas, including:
- avoidance actions (with calibrated knowledge standards, hardening periods, and proportionate carve-outs)
- asset tracing (with…