Preventive restructuring and second chance for entrepreneurs: what's in it for SMEs?

In November 2016, the European Commission, as part of its single market strategy, published a proposal on preventive restructuring frameworks and second chance for entrepreneurs and measures to increase the efficiency of restructuring, insolvency and discharge procedures, which entails two overarching objectives. The first consists in ensuring that any viable enterprise in financial difficulties located in the EU can have access to national preventive insolvency frameworks enabling its early restructuring, with a view to preventing insolvency. The second relates to giving honest bankrupt entrepreneurs a second chance.

The directive is especially intended to benefit less resourceful small and medium-sized enterprises (SMEs), a welcomed objective. Naturally, the proposal also raises challenges and concerns given how insolvency rules affect a plethora of stakeholders (creditors, debtors, shareholders, courts, etc) and are deeply intertwined with many areas of law. Therefore, it is now timely to raise further awareness on this important initiative and to discuss the way it should be carried forward.

ACCA (the Association of Chartered Certified Accountants), BUSINESSEUROPE and UEAPME are co-organising a conference under the auspices of the Maltese Presidency, to discuss the benefits and challenges of the recent Commission proposal on insolvency. The conference brings together business representatives, European Commission, EP JURI Rapporteur, EU Presidency, academics - for a lively debate.