Best Practices in European Restructuring. Contractualised Distress Resolution in the Shadow of the Law

The trend away from traditional formal insolvency proceedings opens up ample scope for private self-regulation, with all the opportunities and risks that this entails. The transition may prove less costly if the resulting uncertainty is minimized. This presents national legislators with a delicate challenge: they should not be overly prescriptive, but should effectively delegate decision-making to stakeholders and experienced professionals, who are likely better informed and more motivated to make the appropriate decisions. At the same time, the law must ensure an adequate flow of information and the creation of incentives capable of guiding the parties’ conduct. In this context, guidelines on best practices can prove invaluable. They can support policy-making within a given legal system by highlighting the successes and failures of other systems, and they can enable professionals, advisors, debtors, creditors, and courts to find common ground in formulating high-quality restructuring plans. Based on extensive empirical research conducted in four European Union member states, this book compiles and summarizes the most relevant best practices across the various stages of the crisis resolution process. Drawing on these practices, it provides legislators with a set of legislative "Policy Recommendations” and other key stakeholders with a set of “Guidelines.” Particular attention is given to the specific needs of micro, small, and medium-sized enterprises.