The European Commission has published a paper on its study covering pre-insolvency, early intervention, reorganisation and liquidation.
The paper notes that the pre-insolvency measures that Member States have in force today do not provide for strong guarantees and protection. Recently, Member States have adopted new rules or have injected money or granted guarantees to the creditors of banks. These measures confirm that the existing pre-insolvency regulations could not solve the banking situation efficiently and promptly. This paper argues that in light of this it is necessary to create an efficient new European legal framework for pre-insolvency. The paper then discusses the feasibility of establishing the new legal framework and sets out proposals for the reorganisation and liquidation procedures.
View Study on Pre-insolvency - Early intervention - Reorganisation - Liquidation, 20 April 2010