ENSURING EFFECTIVE RESTRUCTURING PROCEEDINGS IN THE IMPLEMENTATION OF THE RESTRUCTURING AND INSOLVENCY DIRECTIVE

Abstract

This article analyzes the problems of ensuring the effectiveness of restructuring proceedings when implementing the Restructuring and Insolvency Directive into the law of the Republic of Lithuania. It examines the economic, social, and legal objectives of restructuring proceedings, and how this process can preserve viable companies operating in the market which encounter issues of solvency. The goals of the Restructuring and Insolvency Directive and the need to harmonize restructuring proceedings in the European Union are also assessed. This article additionally focuses on analyzing elements of ensuring the effectiveness of the restructuring proceedings set out in the Restructuring and Insolvency Directive: essential contracts, new and interim financing, suspension of individual enforcement measures, and the confirmation of a restructuring plan. It analyzes how these elements of the restructuring proceedings can help to ensure the preservation of viable companies and the continuity of activities during restructuring proceedings. Finally, this article also examines the proposed amendments to the Law on the Insolvency of Legal Entities regarding the implementation of the Restructuring and Insolvency Directive, and considers whether the proposed amendments will increase the efficiency of restructuring proceedings.

Keywords

• restructuring
• european union law
• insolvency law
• restructuring and insolvency directive