Public Consultation on the transposition of Directive (EU) 2019/1023 of the European Parliament and Council on preventive restructuring frameworks, insolvency and discharge of debt

The Department of Business, Enterprise and Innovation invites submissions to a public consultation on the transposition of Directive (EU) 2019/1023 of the European Parliament and of the Council of 20 June 2019, amending Directive (EU) 2017/1132 on restructuring and insolvency.

The consultation does not extend to the Articles in the Directive relating to the discharge of debt of over indebted entrepreneurs as personal insolvency and bankruptcy law fall within the remit of the Department of Justice and Equality.

This Directive, which must be transposed by 17 July 2021, aims to reduce barriers for cross border investment, reduce the cost of insolvency and support efforts to reduce non-performing loans.

The Directive contains several key measures:

  • Early warning and access to information
  • Preventive restructuring frameworks
  • Facilitating negotiations on preventive restructuring plans
  • Restructuring plans
  • Stay of individual enforcement actions
  • Discharge of debt (not relevant to corporate insolvency)

Ireland currently has a preventive restructuring framework in examinership, which in the current format complies with many requirements under the Directive. The Department of Business, Enterprise and Innovation is consulting on the use of Member State options, being matters in respect of which Member States can or must make a choice. Views are being sought on the current provisions of examinership and any amendments that may be required under the Directive.

Respondents are requested to make their submissions to companylawconsultation@dbei.gov.ie, clearly marked as ‘Public Consultation on the Transposition of Directive (EU) 2019/1023’.

The deadline for submissions is 5pm on Friday, 6 March 2020.

Published by Commerce, Consumer and Competition

Topics: Company Law

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