Under the proposed new rules a business would be given up to four months “breathing space” from enforcement actions from creditors to give it time to negotiate debt restructuring, the Commission said.
Minority creditors and shareholders should not be able to block restructuring plans, although their “legitimate interests” will be protected, it said, while workers will “enjoy full labour protection” throughout the restructuring process”.
Early-warning tools would help companies to identify a deteriorating business situation more quickly and begin restructuring earlier, the Commission said.
Court proceedings, which are currently lengthy, complex and costly, need to be simplified, the Commission said.
The new measures would le…
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