Originally posted on 18 Dec 2013

A key European Parliament committee has supported a European Commission proposal to modernise Europe’s rules on cross-border business insolvency, helping to give otherwise viable businesses a ‘second chance’. The Legal Affairs Committee (JURI) voted by 20 votes in favour, 1 against and 3 abstentions to back the Commission’s proposal which will throw businesses hit by the economic crisis a lifeline.The proposed modernisation of the EU’s Insolvency rules – the Regulation in force at present dates from 2000 – is a key first step to bringing EU insolvency law into the 21st century (IP/12/1354, MEMO/12/969). The new rules which were proposed by the Commission in December 2012 will shift the focus away from liquidation towards a new approach helping businesses overcome financial difficulties, while at the same time protecting creditors’ rights to get their money back.Read the full article at Bizezia News here.

Martin Pollins