On the proposal for a directive of the European Parliament and of the Council harmonising certain aspects of insolvency law
ECON-AD-752615
Committee on Economic and Monetary Affairs · Rapporteur: René Repasi
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The committee opinion amends the proposed directive on insolvency law to extend simplified winding-up proceedings to SMEs, strengthen worker protection, and adjust avoidance actions and pre-pack rules.¶¶¶ It also calls for data reporting support and annual reports on insolvency cases, and clarifies that employees can be creditors.¶¶¶
Committee position. The Committee on Economic and Monetary Affairs proposes amendments to extend the directive's scope to SMEs, strengthen worker protections, and refine rules on avoidance actions and pre-pack sales.¶¶¶
Key points
- Extends the scope of simplified winding-up proceedings to SMEs, not just microenterprises.¶¶¶
- Requires that directors take steps to avoid insolvency and only file for insolvency if it cannot be avoided, considering creditors' interests.¶
- Allows courts to declare void legal acts that harm creditors only if the other party knew of the debtor's intent, removing the 'should have known' standard.¶¶
- Ensures that executory contracts are assigned to the acquirer without consent but after consultation, with exceptions for competitors and employee contracts.¶¶
- Requires that sale processes in pre-pack aim for fair value and include safeguarding employment as a criterion.¶¶
- Mandates that workers' rights to information and consultation are not prejudiced, and that employees can be represented in creditors' committees.¶¶¶
- Provides that employees' claims are not subject to the stay in simplified proceedings unless payment is guaranteed.¶
- Allows Member States to deem legal acts perfected before registration in public registers.¶¶
- Requires that lack of funding does not prevent appointment of an insolvency practitioner in simplified proceedings.¶
- Calls on the Commission to support harmonised data reporting and produce annual reports on insolvency cases.¶¶
Who is affected
- Microenterprises and SMEs: gain access to simplified winding-up proceedings and protections.¶¶
- Employees: their claims are protected and they can be represented in creditors' committees.¶¶
- Directors of insolvent companies: face new duties to avoid insolvency and file when necessary.¶
- Creditors: benefit from clearer rules on avoidance actions and participation in committees.¶¶
Figures and deadlines
- Two weeks: deadline for microenterprise or SME to submit information after opening of proceedings.¶