French pre-pack proceedings challenged by the European Parliament and Council’s proposed directive harmonizing certain aspects of insolvency law: the difficulty of striking a balance between transparency and confidentiality
In France, pre-pack proceedings are considered one of the key restructuring tools. The future transposition of the proposed directive into French law, as it currently stands, should lead to higher recovery rates in France in pre-pack proceedings, as they would require greater transparency in the bidding process. However, that very transparency, along with the increased obligations for the insolvency practitioner, might make pre-pack proceedings less attractive than they are today.
A contribution byAnja Droege Gagnier
Source: Insolvency and Restructuring International, Vol. 17, No. 1, June 2023