A radical cross-border shake-up of insolvency laws was today proposed by the European Commission.
An EU draft directive was issued proposing to give companies more breathing space to sort out debts instead of being forced to cease trading.
Similar to US-style Chapter 11 proceedings, companies would be shielded from creditors taking action against a company during a four month window. Such a shield could be extended to one year in exceptional cases.
Read more: Legislators must not be fooled by the latest insolvency figures
Chapter 11 is well-known in the US for helping companies sort t…
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