On 26 June 2019, the new Harmonisation Directive was formally published in the Official Journal of the European Union. As a result, by 17 July 2021, each Member State must include in its respective insolvency and restructuring laws a US Chapter 11-style debtor-in-possession regime which will radically change the future landscape of the European restructuring market. In this White Paper, we consider the key features of the Directive and its implications for stakeholders.

To date, EU legislation in the area of corporate insolvency and restructuring has largely been limited to cross-border recognition and cooperation without any attempt to harmonise substantive insolvency laws across Member States. The new Directive is a first step in this direction.