Countries.
ICRA Systems can be applied in all countries implementing the
Directive and similar schemes (Common Law countries).
As a result of the EU Directive on Restructuring and Insolvency of 20 June 2019 (EUR 2019/1023, “Directive”), many countries have started or already finalized to reorganize their insolvency laws, all aimed to support companies in financial distress. This will result in a more attractive and flexible restructuring scheme in the whole of Europe, similar to US Chapter 11 and English Scheme of Arrangement legislation.
Some key jurisdictions in which the Directive has already been implemented are highlighted on this page.
Netherlands
The Dutch legislature has added a major addition to the Dutch Bankruptcy Code, the Dutch Scheme of Arrangement (the “Dutch Scheme”). The Dutch Scheme provides for an out-of-court debt restructuring process and is implemented via the WHOA (“Wet Homologatie Onderhands Akkoord”).
Belgium
Belgium has created a draft law of 20 March 2023 for the implementation of the Directive with the aim to enhance the efficacy of procedures intended to sustain the operations of struggling companies. The range of tools available has been extended a great deal. It is the expectation that this draft law will come into effect in September of this year, making restructuring processes in Belgium much easier for companies to execute.
UK
Although the UK left the EU before the Directive implementation deadline, it updated its legislation by introducing a new restructuring plan procedure, similar to the Dutch Scheme. A company may enter into an arrangement with its creditors . Creditor approval and court sanction are necessary, everything else is flexible.
Germany
Germany has implemented the Directive into German law with a new act called “Gesetz über den Stabilisierungs- und Restrukturierungsrahmen für Unternehmen” (“StaRUG”), which came into effect on 1 January 2021. The StaRUG osimplifies the restructuring of companies which are at risk of imminent illiquidity. A restructuring plan should be accepted by the majority of the effected creditors.
Spain
Spain introduced the Directive in late August 2022, called Restructuring Plans. It features for example a cram-down restructuring process to be negotiated out of court and minimum court involvement. This scheme is in general also very similar to the Dutch Scheme and allows for ICRA Systems involvement to create a clear process for all creditors.
France
In France, the Ordinance 2021-1193 implemented the Directive into French law, effective 1 October 2021. This Ordinance implements the Directive and significantly reduces the lengths of the original proceedings in France and improves the position of creditors. As in he whole of the EU, it simplifies and clarifies rules relating to security interests and security-holding creditors.
Austria
In Austria, the Bundesgesetz über die Restrukturierung von Unternehmen (“ReO”) came into effect on 17 July 2021, offering companies there a simplified procedure in restructuring their debts. All steps to be taken by companies in Austria are similar to those have to be taken in the Netherlands, therefore ICRA systems can support the process perfectly.
