America News Agency

The EU Council approved a new law aimed at harmonizing insolvency rules across Europe.

The new regulation is intended to reduce the complexity caused by differing national insolvency rules and make the European business environment more attractive for cross-border investors.

It was stated that the regulation will contribute to more integrated and efficient capital markets, which are of critical importance for Europe’s competitiveness.

Under the new rules; it will be possible to annul transactions carried out by the debtor before the insolvency process, competent authorities will be able to examine bank accounts across the EU to identify assets at the request of insolvency administrators, the sale of financially distressed companies will be planned before the insolvency process and completed quickly through the “pre-pack” method, company managers will be obliged to file for insolvency within three months in case of financial distress, creditors’ committees will play a more active role in the process, and countries will publish transparent information notes on their insolvency legislation, which will be accessible through the EU’s e-Justice portal.