Mapping of Preventive Restructuring Frameworks and the EU Directive: Substantive Aspects of Preventive Restructuring in Domestic Processes and in the Directive
Chapter 7 deals with Part II of the questionnaire, which concerns substantive aspects of preventive restructuring, while Chapter 8 will deal with the first part of Part III, which looked at procedural matters. The second part of Part III of the questionnaire deals with the role of judicial and administrative authorities, which will be discussed in Report 2 of the JCOERE Project. The chapter discusses more specific aspects of the existing preventive restructuring and restructuring procedures set out above, with a specific focus on whether they contain any of the common modern elements of preventive restructuring, such as those included in the US Chapter 11, the Irish Examinership, and the Preventive Restructuring Directive. The chapter will focus on six specific substantive areas: the stay or moratorium (Article 6); adoption of restructuring plans (Article 9); confirmation of restructuring plans, including the exercise of majority rule within classes (Article 10); the cross-class cram-down and the relevant fairness tests for assessing the impact on dissenting creditors (Article 11); workers (Article 13); and the protection of interim and new financing along with the potential for priority in repayment (Article 17). The chapter will examine what provisions, if any, the contributing jurisdictions have that align with these provisions and any plans for the introduction of such provisions or for amendments to their current systems.