Book Chapter Details
Mandatory Fields
Irene Lynch Fannon
2020 Unknown
European Preventive Restructuring: Article by Article Commentary
European Preventive Restructuring: Article by Article Commentary
Beck
Germany
In Press
1
Optional Fields
European Restructuring. Articles 17 and 18. New and Interim Financing
Relevant recitals dealing with new financing begin with Recital 48 of the PRD which indicates that the more formal type of rescue procedure envisaged by the Preventive Restructuring Directive (“PRD”) – namely that which culminates in the confirmation of a rescue plan by either a judicial or administrative authority is “particularly necessary” where there are provisions on new financing included in the plan. No detail on the nature of the kind of new financing which is envisaged is provided. (Note there is no mention of interim financing at this point). Read together with other provisions which require that confirmation of a restructuring plan by a judicial or administrative authority is necessary, for example the provisions in Article 11 on Cross Class cram down indicate that the Directive embodies an approach which allows Member States to pursue number of tracks from which to choose in terms of implementing the Directive. These approaches can range from introducing a robust restructuring process complete with a blanket stay, protection of, and perhaps priority for, new and interim financing; cross class cram down and court approval or a less robust out of court type of procedure which relies on agreement and negotiation. Both types are currently present across the member states of the EU.
Paulus, Christoph and Dammam, Richard
227
240
Grant Details