Directive (EU) 2017/1132 Restructuring and Insolvency is adopted: transposition is underway (C. Ottaway, Partner at Hoche Avocats)

Directive (EU) 2017/1132 Restructuring and Insolvency is adopted: transposition is underway (by Catherine Ottaway, Partner at Hoche Avocats)

Directive (EU) 2017/1132 on preventive restructuring frameworks, debt forgiveness and disqualifications, and measures to be taken to increase the efficiency of restructuring, insolvency and debt proceedings (“Restructuring and Insolvency Directive”) was finally adopted by the Council of the European Union on 6 June 2019.
The objective of the Restructuring and Insolvency Directive is to contribute to the proper functioning of the internal market and to remove obstacles to the free movement of capital and freedom of establishment through the harmonization of national laws and procedures on preventive restructuring, insolvency and debt relief. While preserving the fundamental rights and freedoms of workers, the Directive will ensure that viable companies and entrepreneurs in difficulty have access to effective preventive restructuring frameworks, enabling them to continue their activities. The Directive also includes measures to improve the efficiency of restructuring, insolvency and debt forgiveness proceedings.

The PACTE law, promulgated on 22 May 2019 by the President of the Republic, authorizes the Government to transpose this directive by ordinance within 24 months of the date of promulgation. The Ministry of Justice has just opened two consultations on important reform projects: the transposition by ordinances of the Directive on Restructuring and Insolvency and the Reform of Security Law (and its articulation with collective proceedings ensures a balance between the interests of creditors, debtors and guarantors); the consultation ends on 15 July 2019.