Late last year, the European Commission publised its proposal on a new approach to business insolvency in Europe. This proposal was recently translated in all languages of the European Union. In a working paper, professor Eidenmüller (Oxford) strongly criticizes the conceptual framework of said proposal.
The proposal “is flawed because it creates a refuge for failing firms that should be liquidated, because it rules out going concern sales for viable firms, and because it is, in essence, a twisted and truncated insolvency proceeding”. Instead of harmonization, an optional “European Insolvency Regime”, to be incorporated by European firms in their charter, is proposed. With this paper, the debate on the merits of the Commission’s proposal is opened. The paper can be consulted here.