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Important Changes to Corporate Restructuring Law

Director Factsheets

This Factsheet is Courtesy of McCann FitzGerald LLP

The EU Directive on Preventive Restructuring Frameworks (the “Directive”) precipitated a pan-European review by Member States of their corporate restructuring statutes. Several Member States (including Germany and the Netherlands), as well as the United Kingdom, made sweeping changes to their insolvency processes, in some cases introducing entirely new restructuring mechanisms. By contrast, Ireland preserved its examinership regime, introduced over 30 years ago. Ministerial regulations - the European Union (Preventive Restructuring) Regulations 2022 (the “Regulations”) – have made the changes to that regime required to effect the first phase of a process designed to bring examinership in line with the Directive.

Modelled on Chapter 11 Bankruptcy in the US, examinership is a process familiar to international debtors and their advisors, and while the Directive has necessitated changes, the core principles of this well-established process remain.