Directive on Restructuring and Insolvency

The Directive on Restructuring and Insolvency provides a unified legal framework within the European Union to help companies facing financial difficulties. Its goal is to encourage fair and efficient processes that enable businesses to restructure their debts and avoid going bankrupt whenever possible. This includes rules for early warning signs, preventive measures, and restructuring plans, aiming to balance the interests of debtors and creditors. Overall, it seeks to promote more effective insolvency procedures across member states, fostering economic stability and giving troubled companies a better chance to recover and continue operating.