Insolvency is a fact of life that many companies in Europe will be faced with. Key facts on EU insolvencies show us that:
- ¼ of insolvencies have a cross-border nature;
- insolvencies cost 1.7 millions in job losses a year in the EU;
- it can take an average of 6 months to 4 years to resolve an insolvency case in national courts in the EU;
- recovery is higher in restructuring procedures (83% of claims) compared to liquidation procedures (57% of claims).
For the Commission proposal to have substantial impact the following elements should be secured:
- the proposal should remain limited to pre-insolvency procedures;
- an EU minimum standards approach is the best suited to insolvency law which is strongly intertwined with so many areas of national law;
- a right balance needs to be achieved between the interests of debtors and of creditors.