A guide to pre-insolvency and insolvency proceedings across Europe

Different restructuring and insolvency regimes in the 27 EU Member States create legal uncertainty and place high demands on market participants in terms of obtaining information, but also in terms of conducting or participating in restructuring and/or insolvency proceedings. The fragmentation of restructuring and insolvency law is also an important consideration for investors or lenders when determining the level of risk premium they expect from an investment: the lower the efficiency of the respective restructuring or insolvency regime, the higher the risk premium. A high risk premium increases the cost of capital for the company and discourages investors from lending when the risk is particularly high. This, in turn, limits the range of financing options available to the company and, more generally, its ability to raise affordable finance to expand its operations.

In any case, it is crucial to understand the specifics of the various European restructuring and insolvency regimes, and thus the possibilities for a successful restructuring.

Find out more about the (pre-)insolvency legal framework in 23 European jurisdictions. Our #Deloitte guide "A guide to pre-insolvency and insolvency proceedings across Europe" provides valuable insights into recent reforms and key insolvency regimes in Europe, as well as practical solutions for companies of all sizes. Our Deloitte Legal restructuring experts Petr Suchý and Michal Buchta provide an overview of the relevant regulations in the Czech Republic.
#InsolvencyGuide #MakeAnImpactThatMatters