Brussels, 08/07/2013 (Agence Europe) - Last Friday, the European Commission launched a public consultation on a new European approach on corporate bankruptcies and insolvency. At the end of 2012, the Commission put a proposal on the table for revising a regulation dating back to 2000. Clearly, however, the Commission explains, simple revision of the regulation will not be enough on its own to resolve the underlying problems for cross-border insolvency, such as the serious differences between different national legislations on insolvency that sometimes exist. Hence the need for a consultation. Emphasis will be on solutions that help healthy companies to survive and provide a second chance to honest entrepreneurs, whilst protecting the right of lenders to recover their funds. Procedures should be swift and efficient and in the interest of both debtors and lenders. They should also help to protect jobs, help suppliers maintain their client bases and preserve the value of their companies in the interests of their owners.
The Commission explains that the main problems involved the deadline for cancelling debt, the criteria applicable for initiating procedures, the declaration of debt and rules governing restructuring plans.
The consultation also focuses on the need to harmonise the “rehabilitation deadline” (deadline needed to close a failing company). Currently, the deadline for closing a bankrupt company varies considerably and ranges from four months in Ireland to more than six years in the Czech Republic. The consultation will also cover provisions governing the exercise of the profession of liquidator. It is open until 11 October. (SP/transl.fl)