The European Commission would seem to have drawn Chapter 11 of the US bankruptcy code in drafting its proposal on the revision of the insolvency directive, which it will bring forward, in principle, on 19 October.
Chapter 11 is a recovery regime that allows companies in financial difficulty to restructure their business under the protection of a “stay”. This is to give companies the opportunity to avoid bankruptcy by taking charge of the situation at an early stage.
This is exactly...