Companies should be given the opportunity to restructure themselves with the help of a restructuring process before actual insolvency.

 

The core of the ministerial draft of the Restructuring and Insolvency Directive Implementation Act (RIRL-UG), which was sent for review on February 23, 2021, or the restructuring regulations (ReO) created with it, is the restructuring plan in accordance with Sections 23 ff ReO and the associated voting procedure.

The ReO (Restructuring Regulations), which is due to come into force with the RIRL-UG (Restructuring and Insolvency Directive Implementation Act), on July 17, 2021, is from Principle of debtor self-administration in order to offer debtors an incentive to take early preventive measures to avert actual insolvency in the event of financial difficulties. Under certain circumstances, however, it is mandatory for the court to appoint a so-called restructuring officer, who is reminiscent of the Austrian restructuring administrator. The voting procedure is also subject to mandatory requirements, which differs significantly from a procedure for voting on a restructuring plan in accordance with the provisions of the Insolvency Code (IO).
In Part II of our newsletter we will inform you the content details of a restructuring plan, the coordination procedure and a restructuring representative to be appointed.

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