Restructuring and Insolvency Q&A Tool

This tool enables subscribers to search the Country Q&A in the PLC Cross-border Restructuring and Insolvency Handbook by question and jurisdiction. Simply select the questions and the jurisdictions that you are interested in and click the "submit" button.

Please note that the law stated dates for each jurisdiction covered may not be the same. To check the law stated dates for each jurisdiction, please visit the individual article.

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Forms of security

1. What are the most common forms of security granted over immovable and movable property? Are there formalities that the security documents, the secured creditor or the debtor must comply with? What is the effect of non-compliance with these formalities?
 

Creditor and shareholder ranking

2. Where do creditors and shareholders rank on a company's insolvency?
 

Unpaid debts and recovery

3. Do trade creditors use any mechanisms to secure unpaid debts?
 
4. Can creditors invoke any procedures (other than the formal rescue or insolvency procedures described in Question 6) to recover their debt? Is there a mandatory set-off of mutual debts on insolvency?
 

State support

5. Is state support for distressed businesses available?
 

Rescue and insolvency procedures

6. In relation to each available rescue and insolvency procedure:
  • What is its objective and, where relevant, what are the prospects for recovery?

  • How is it initiated, when, by whom and whom and which companies can it be applied to?

  • Can the company obtain any protection from its creditors during the procedure?

  • What substantive tests apply?

  • How long does it take?

  • What consents and approvals are required?

  • Who supervises the procedure and controls the company's affairs (for example, an independent accountant or the court)?

  • How does it affect the company, shareholders, employees, trading partners and creditors?

  • How is the procedure formally concluded and what happens to the company on conclusion?

 

Stakeholders' roles

7. Which stakeholder have the most significant role in the outcome of a restructuring or insolvency procedure?
 

Liability

8. Can a director, parent company (domestic or foreign) or other party be held liable for an insolvent company's debts?
 

Setting aside transactions

9. Can an insolvent company's pre-insolvency transactions be set aside? If so:
  • Who can challenge these transactions, when and in what circumstances?

  • Are third parties' rights affected?

 

Carrying on business during insolvency

10. In what circumstances can a company continue to carry on business during insolvency or rescue proceedings? In particular:
  • Who has the authority to supervise or carry on the company's business?

  • What restrictions apply?

 

Additional finance

11. Can a company that is subject to insolvency proceedings obtain additional finance (for example, debtor-in-possession financing or equivalent)? Is special priority given to the repayment of this finance?
 

Multinational cases

12. In relation to multinational cases:
  • Do local courts recognise insolvency and rescue procedures in other jurisdictions, and court judgments made during these procedures? Is recognition given under specific legislation or under case law (for example, principles of comity)?

  • Do courts co-operate where there are concurrent proceedings in other jurisdictions?

  • Is your jurisdiction party to any international treaties, model laws or EU legislation (if applicable)?

  • Are there any special procedures that foreign creditors must comply with when submitting claims in local insolvency proceedings?

 

Reform

13. Are there any proposals for reform?