Exposition of the Preventive Restructuring Directive
Chapter 5 provides a full exposition of the Preventive Restructuring Directive (PRD) since the 2011 report presented to the Commission by the Committee on Legal Affairs, which eventually led through the 2014 Recommendation on a New Approach to Business and Insolvency, to the PRD as it is now. The chapter will examine the various inter-institutional discussions and the Proposal’s progress through the EU, focusing on those provisions that resulted in the greatest compromises in the published PRD. Similar to those that were discussed in Chapter 4, these provisions will include primarily the stay, the cram-down and cross-class cram-down, and the protection of new financing. The work in Chapter 5 satisfies a key task of Workpackage 2 of the JCOERE project.