EU's Pre-pack Directive proposal: a guide to how this will impact the existing insolvency law in Slovenia, the Czech Republic and Hungary
On 7 December 2022, the European Commission published a proposal for a Directive of the European Parliament and of the Council harmonising certain aspects of insolvency law ("Directive Proposal"). The proposal aims to make insolvency proceedings more predictable and efficient within the EU.
Most importantly the Directive Proposal introduces a mandatory inclusion of a new restructuring instrument to Slovenian insolvency law, a so called ‘pre-pack proceeding’.
A ‘pre-pack proceeding’ is a fast-track liquidation proceeding that:
- in the preparation phase allows for a sale of debtor’s business as a going concern, in whole or in part, free of debt and liabilities; and
- in the liquidation phase the sale of debtor’s business is approved and completed, proceeds distributed to the creditors and the debtor is liquidated in an insolvency proceeding.
The following articles describe how Slovenia, the Czech Republic and Hungary how the directive will impact their existing insolvency law. For more details, follow the links to the articles:
Pre-pack sales procedures in Hungary
Pre-pack insolvency sale in the Czech Republic: Current situation and outlook
The Pre-pack Directive proposal: a guide to possible pre-pack proceedings in Slovenia
