A STAY OF INDIVIDUAL ENFORCEMENT ACTIONS AS A BASIS FOR EFFECTIVE RESTRUCTURING PROCEEDINGS
This article focuses on the implementation of a stay of individual enforcement actions in corporate restructuring proceedings. The authors analyse the general goals of a stay of individual enforcement actions in restructuring proceedings by considering, for instance, the economic reasons for such a...
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| Format: | Article |
| Language: | English |
| Published: |
Mykolas Romeris University
2021-06-01
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| Series: | International Comparative Jurisprudence |
| Subjects: | |
| Online Access: | https://ojs.mruni.eu/ojs/international-comparative-jurisprudence/article/view/6571 |
| _version_ | 1819154241236762624 |
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| author | Remigijus Jokubauskas Marek Świerczyński Audronė Balsiukienė |
| author_facet | Remigijus Jokubauskas Marek Świerczyński Audronė Balsiukienė |
| author_sort | Remigijus Jokubauskas |
| collection | DOAJ |
| description | This article focuses on the implementation of a stay of individual enforcement actions in corporate restructuring proceedings. The authors analyse the general goals of a stay of individual enforcement actions in restructuring proceedings by considering, for instance, the economic reasons for such a stay, when it should be applicable, and the exceptions that should be established for its application. The Directive on restructuring and insolvency, adopted on 20 June 2019, reforms the regulation of a stay of individual enforcement actions in Member States of the European Union, aims to increase the efficiency of restructuring proceedings by providing legal instruments to facilitate a debtor’s negotiation of a restructuring plan, and provides certain rules as to how a debtor’s assets should be protected during these negotiations. Namely, a stay of individual enforcement actions and the protection of essential executory contracts should protect a debtor and ensure the equality of all creditors (pari passu) during the negotiation of a restructuring plan. However, in practice these goals result in less protection – especially for ordinary creditors. The authors analyse which aspects of a stay of individual enforcement actions are harmonized under the Directive on restructuring and insolvency, and whether they are sufficient to ensure the effective negotiation of a restructuring plan. Nevertheless, a fair balance between the interests of the debtor and their creditors should be ensured in restructuring proceedings, and the authors assess whether or not such a balance is established. |
| first_indexed | 2024-12-22T15:17:57Z |
| format | Article |
| id | doaj.art-5a906d36272f401ca0ef6a05a9950d3e |
| institution | Directory Open Access Journal |
| issn | 2351-6674 2351-6674 |
| language | English |
| last_indexed | 2024-12-22T15:17:57Z |
| publishDate | 2021-06-01 |
| publisher | Mykolas Romeris University |
| record_format | Article |
| series | International Comparative Jurisprudence |
| spelling | doaj.art-5a906d36272f401ca0ef6a05a9950d3e2022-12-21T18:21:41ZengMykolas Romeris UniversityInternational Comparative Jurisprudence2351-66742351-66742021-06-017110.13165/j.icj.2021.06.009A STAY OF INDIVIDUAL ENFORCEMENT ACTIONS AS A BASIS FOR EFFECTIVE RESTRUCTURING PROCEEDINGSRemigijus JokubauskasMarek ŚwierczyńskiAudronė BalsiukienėThis article focuses on the implementation of a stay of individual enforcement actions in corporate restructuring proceedings. The authors analyse the general goals of a stay of individual enforcement actions in restructuring proceedings by considering, for instance, the economic reasons for such a stay, when it should be applicable, and the exceptions that should be established for its application. The Directive on restructuring and insolvency, adopted on 20 June 2019, reforms the regulation of a stay of individual enforcement actions in Member States of the European Union, aims to increase the efficiency of restructuring proceedings by providing legal instruments to facilitate a debtor’s negotiation of a restructuring plan, and provides certain rules as to how a debtor’s assets should be protected during these negotiations. Namely, a stay of individual enforcement actions and the protection of essential executory contracts should protect a debtor and ensure the equality of all creditors (pari passu) during the negotiation of a restructuring plan. However, in practice these goals result in less protection – especially for ordinary creditors. The authors analyse which aspects of a stay of individual enforcement actions are harmonized under the Directive on restructuring and insolvency, and whether they are sufficient to ensure the effective negotiation of a restructuring plan. Nevertheless, a fair balance between the interests of the debtor and their creditors should be ensured in restructuring proceedings, and the authors assess whether or not such a balance is established.https://ojs.mruni.eu/ojs/international-comparative-jurisprudence/article/view/6571restructuring proceedingseuropean union lawpari passua stay of individual enforcement actions |
| spellingShingle | Remigijus Jokubauskas Marek Świerczyński Audronė Balsiukienė A STAY OF INDIVIDUAL ENFORCEMENT ACTIONS AS A BASIS FOR EFFECTIVE RESTRUCTURING PROCEEDINGS International Comparative Jurisprudence restructuring proceedings european union law pari passu a stay of individual enforcement actions |
| title | A STAY OF INDIVIDUAL ENFORCEMENT ACTIONS AS A BASIS FOR EFFECTIVE RESTRUCTURING PROCEEDINGS |
| title_full | A STAY OF INDIVIDUAL ENFORCEMENT ACTIONS AS A BASIS FOR EFFECTIVE RESTRUCTURING PROCEEDINGS |
| title_fullStr | A STAY OF INDIVIDUAL ENFORCEMENT ACTIONS AS A BASIS FOR EFFECTIVE RESTRUCTURING PROCEEDINGS |
| title_full_unstemmed | A STAY OF INDIVIDUAL ENFORCEMENT ACTIONS AS A BASIS FOR EFFECTIVE RESTRUCTURING PROCEEDINGS |
| title_short | A STAY OF INDIVIDUAL ENFORCEMENT ACTIONS AS A BASIS FOR EFFECTIVE RESTRUCTURING PROCEEDINGS |
| title_sort | stay of individual enforcement actions as a basis for effective restructuring proceedings |
| topic | restructuring proceedings european union law pari passu a stay of individual enforcement actions |
| url | https://ojs.mruni.eu/ojs/international-comparative-jurisprudence/article/view/6571 |
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