EXPEDITED

CORPORATE DEBT

RESTRUCTURING

IN THE EU

Edited by

RODRIGO OLIVARES-CAMINAL

OXTORD UNIVERSITY PRESS

TABLE OF CONTENTS

Table ofCases xxiii Table of Legislation xxx Contributor Biographies xlviii

PART A: THEORETICAL ANALYSIS

1. Expedited Corporate Debt Restructuring: Conceptual Framework and Practical Issues I. Introduction 1.01

II. Court-Supervised Reorganizations 1.12 III. Out-of-Court Mechanisms 1.20

IV. The 'Hybrid Approach' 1.43 V. Concluding Remarks 1.70

PART B: JURISDICTIONAL ANALYSIS

2. Austria: Expedited Corporate Debt Restructuring in Austria I. Overview 2.01

II. Non-Judicial Restructuring 2.13 III. Judicial Restructuring 2.40

IV. Facts and Figures V. Outlook 2.81

3. Belgium: Belgian Expedited Proceedings: Business Continuity Proceedings I. Hie Belgian Business Continuity Act of 31 January 2009 3.01

Annex: Case Study 3.62 I. Introduction 3.62

II. Hie Decto Fleurus Case 3.66

4. Bulgaria: Debt Restructuring in Bulgaria I. Expedited Debt Restructuring 4.01

II. Debt Restructuring as Part of the Insolvency Proceedings 4.05

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III. Out-of-Court Settlement Agreement after Initiation of Insolvency Proceedings 4.62

5. Croatia: Croatian Pre-Insolvency Settlement Saves Companies which are 'Too Big to Fail' I. Corporate Debt Restructuring in Croatia 5.01

II. Initial Out-of-Court Debt Restructuring 5.05 III. Debt and Pre-Insolvency Settlement Act 5.09

IV. Court-Supervised Restructuring 5.51 V. Concluding Remarks 5.54

Annex: Case Study 5.56

I. Introduction 5.56 II. Legislative Evolution 5.61 III. Dalekovod Joint Stock Company 5.69 IV. Dalekovod Pre-Insolvency Settlement Procedure 5.71

V. Execution of the Pre-Insolvency Settlement 5.83 VI. Conclusion 5.88

6. Cyprus: Expedited Corporate Debt Restructuring in Cyprus I. The Legal Framework 6.01

II. Insolvency and Restructuring Procedures 6.04 III. General Principles Regarding Insolvency 6.05 IV. Company Arrangements and Reconstructions 6.09 V. Receivership 6.13

VI. Members'Voluntary Liquidation 6.17 VII. Creditors' Voluntary Liquidation 6.25

VIII. Winding up by the Court, or Compulsory Liquidation 6.32

IX. Winding up Subject to the Supervision of the Court 6.44 X. Assessment of the Suitability of the Various Procedures for

an Expedited Restructuring 6.45 XI. Conclusion 6 51 Annex: Case Study (,.56

I. Background 6.56

II. Legal Route 6.58

7. Czech Republic: The Czech Expedited Reorganization Proceedings

I. Description of Czech Law on Expedited Reorganization Proceedings 70j

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II. Empirical Findings on the Use of the Czech Expedited Reorganization Proceedings 7.33

8. Denmark: Danish Expedited Debt Proceedings I. Restructuring under Danish law 8.01

II. Out-of-Court Restructuring 8.07 III. In-Court Restructuring 8.36

Annex: Case Study 8.75 I. Denmark—Practice: Restructuring of the Property

Development Group Estate Corp Denmark 8.75

9. England and Wales

Part A: Pre-Pack Administration—Theory and Practice

I. Introduction 9.01

II. General Background: the Administration Regime Under Schedule B1 9.04

III. The Administration Timeline: Pre-Commencement Considerations, Appointment of the Administrator, Implementation, and Termination 9.09

IV. Pre-Pack Analysis: Advantages, Perceived Disadvantages, and Regulation 9.44

V. International Context 9.55

VI. Conclusion 9.58

Annex: Case Study 9 59

I. Introduction 959

II. Synopsis 9.60

III. Background 9.61

IV. Pre-administration structure 9.63

V. Financial Situation of the Brewco Group in the lead-up to restructuring and restructuring triggers 9.63

VI. Restructuring negotiation process with stakeholders 9.69

VII. Implementation of the pre-pack 9.86

VIII. Conclusion 9.94

Part B: Schemes of Arrangement—Theory and Practice

I. Introduction 995

II. An Outline of the Scheme Process 9.97

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III. Procedura 9.103

IV. Effect of a Scheme 9.139 V. Challenge 9.142

Annex: Case Study 9.143 I. Structure 9-143

II. The group's financial position and valuations 9.150 III. Classes 9.155 IV. Chapter 15 of the US Bankruptcy Code and recognition 9.160 V. Options 9.164

VI. The scheme of arrangement 9-171

VII. Conditionality 9-173

10. Estonia: Estonian Expedited Debt Proceedings I. General Background 10.01 II. Insolvency Proceedings under the Estonian Insolvency Act 10.03

III. Reorganization Procedure 10.62 IV. Privately Negotiated Arrangements 10.77 V. Conclusions 10.80

Annex: Case Study 10.85

11. Finland: Pre-Packed Insolvency Proceedings in Finland

I. Insolvency Law—General 11.01 II. Bankruptcy 11.08

III. Restructuring Under Finnish Law 11.36 IV. Sale of Assets in Bankruptcy and Restructuring

and Expedited Proceedings 11.94 V. Conclusions 11.129

Annex: Case Study 11.135

12. France: French Expedited Proceedings: 'Accelerated' Safeguard

I. General Background: Restructuring Proceedings Available Under French Law 12.04

II. Speedy Pre-Packaged Plans: Accelerated Safeguard 12.52

Annex: Case Study

The Technicolor Case: The First Implementation of a Pre-Packaged Plan of Reorganization Having Inspired the 2010 and 2014 Reforms of the French Insolvency Code 12.70

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I. Introduction 12.70

II. Technicolor SA Overview 12.76

III. The Financial Difficulties Faced by Technicolor SA 12.83

IV. The Premises of an Accelerated Safeguard 12.104

V. Summary Timetable of Technicolor SA's Safeguard Proceeding 12.133

VI. The Outcome of the Technicolor Case 12.135

13. Germany: Expedited Corporate Debt Restructuring Procedures in Germany

I. Introduction 13.01

II. Context 13.04 III. Overview of Insolvency Proceedings 13.08

IV. Protective Shield Proceedings 13.25

Annex: Case Study Protective Shield Proceedings in Practica 13.58 I. Structure 13.58

II. The Croups Financial Position 13.63

III. Restructuring Options 13.66

IV. Preliminary Insolvency Proceedings 13.75 V. The Insolvency Plan 13.77

VI. Formal Insolvency Proceedings 13.81

14. Greece: Greek Pre-Insolvency Proceedings

I. Introduction 14.01 II. Pre-Insolvency Proceedings under 2007 GBC 14.02

III. Pre-Insolvency Proceedings as Amended by Law Nos 4013/2011 and 4072/2012 14.07

IV. Conclusion 14.35

Annex: Case Study A Listed Furniture Company 14.42

15. Hungary: Expedited Corporate Debt Restructuring Procedures in Hungary

I. Introduction 15.01

II. General Overview of Bankruptcy Procedure 15.03

Annex: Case Study The Hotel 'Z' 15.40

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16. Ireland: Expedited Debt Restructuring Proceedings in Ireland

I. Introduction 16.01

II. General Background: Insolvency Proceedings for Companies under the Irish Companies Acts 1963—2013 16.05

III. Expedited Insolvency Restructuring/Procedures 16.29

IV. Conclusion 16.41

Annex: Case Study Fast Track Examinership of the eircom Group 16.42

I. Introduction 16.42

II. The eircom Group 16.43

III. Group History 16.45

IV. Operational/Trading Difficulties 16.49

V. Group Debt 16.50

VI. Negotiations with Creditors 16.53

VII. Fast Track Examinership As the Solution 16.58

VIII. Conclusion 16.63

17. Italy: The Italian Expedited Restructuring Remedies and Proceedings

I. Introduction 17.01

II. Legal Framework 17.06

Annex: Case Study Application of the Italian Restructuring Remedies 17.64

18. Latvia: Expedited Corporate Debt Restructuring in Latvia: the Legal Protection Process

I. Introduction 18.01

II. Regulatory Framework 18.02

III. The Legal Protection Process 18.08

IV. Preparing Application for the LPP 18.12

V. Hie Plan of Measures of the LPP and Terms for the Proceedings 18.15

VI. Negotiations with Creditors and Approval of the LPP Plan 18.23

VII. Court Decision on Initiating the LPP 18.29

VIII. Consequences of Initiation of the LPP 18.30

IX. Methods of Restructuring to be Implemented Düring LPP 18.33

X. Restrictions and Limitations Düring LPP 18.38

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XI. Capitalization of Debts in LPP 18.40

XII. Reorganization Düring LPP 18.41

XIII. Limitations to Debtor Düring LPP 18.43

XIV. Termination of LPP 18.46

XV. Conclusion 18.48

19. Lithuania: Expedited Reorganization Proceedings in Lithuania

I. Legal Framework 19.01

Annex: Case Study The Private Work-out of AB Alka 19.25

20. Luxembourg: Expedited Reorganization Proceedings under Luxembourg Law

I. General Background 20.02

II. Cross-Border Aspects 20.08

III. Luxembourg Formal Reorganization Proceedings 20.17 IV. Private Work-outs and Expedited Reorganization Proceedings 20.62

V. Reorganization through the Enforcement of Financial Collateral Arrangements 20.64

VI. Expected Legislative Developments 20.88

21. Malta: Expedited Corporate Debt Restructuring Proceedings in Malta

I. Foreword 21.01

II. Introduction 21.06

III. The Current Legislative Framework 21.14

IV. Private Work-outs 21.98

V. Local Case Law: Some Practical Aspects 21.124

VI. Conclusion 21.137

22. The Netherlands: Dutch Expedited Reorganization Proceedings

I. Introduction 22.01

II. Liquidation Proceedings 22.02

III. Suspension of Payments Proceedings 22.19

IV. Restructurings without Formal Insolvency Proceedings 22.33

Annex: Case Study Yellow Gold 22.40

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23. Poland: Restructuring Under Reform: Seeking an Optimal Regulation

I. Introduction 23.01

II. The Restructuring Chapter 23.05

III. Application of the Restructuring Chapter: The PKM Duda Case 23.50

IV. The New Restructuring Regulation 23.60

V Conclusions 23.72

24. Portugal: The Portuguese Expedited Procedures

I. Introduction 24.01

II. General Background: Insolvency Proceedings under the CIRE 24.02

III. Special Recovery Proceedings (Processo Especial de Revitalizagäo) (PER) 24.38

IV. Recovery Plan Negotiated within PER 24.44

V. PER Based on a Pre-Negotiated Recovery Plan 24.68

VI. SIREVE: Out-of-Court Companies Recovery System 24.74

VII. Global Analysis 24.90

VIII. Practice and the First Successful Special Recovery Proceedings Portugal: Parkalgars Recovery Plan 24.102

25. Romania: Expedited Corporate Debt Restructuring Procedures in Romania

I. Introduction

II. Legal Framework on Reorganisation Procedures

III. Conclusion

26. Slovakia: Expedited Corporate Debt Restructuring Proceedings in Slovakia

I. Introduction: Legislative Framework and Key Features of Restructuring Proceedings under Slovak Law 26.01

II. Insolvency (Konkurz) 26.08 III. Restructuring 26.31 IV. Pre-Packaged Plan 26.61 V. Private Work-out 26.65 VI. Conclusion 26.69

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25.05

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27. Slovenia: Pre-Insolvency Proceedings in Slovenia

I. Introduction 27.01

II. General Background: Insolvency and Settlement Proceedings under Slovenian Law 27.02

III. Main Characteristics of Settlement Proceedings 27.13 IV. Pre-Insolvency Restructuring under Slovenian Insolvency Law 27.25 V. Conclusion and Outlook on the Legal Framework 27.39 VI. Summary of Important Restructuring Cases Since 2008 27.40

VII. Impact of New Insolvency Legislation 2013 27.45

VIII. Debüt Pre-Insolvency Proceedings Initiated; First Observations 27.48

IX. Conclusion on the Latest Developments 27.54

28. Spain: Expedited Debt Restructuring in Spain

I. Background on the Spanish Insolvency System 28.01

II. Legal Duties and Time Constraints 28.08

III. Out-of-Court Reorganization Alternatives 28.15

IV. In-Court Reorganization Prearranged Plans: Early and Summary Composition Agreements 28.70

Annex: Case Study

Geisas Scheme as Teaser of Spanish Scheme 28.97

29. Sweden: Expedited Corporate Debt Restructuring in Sweden

I. Introduction to the Restructuring Regimes under Swedish Law 29.01

II. Company Reorganization through the Company Reorganization Act 29.06

III. Restructuring through the Insolvency Act 29.30

Annex: Case Study The Saab Automobile Restructuring Case 29.51

PART C: CROSS-JURISDICTIONAL ISSUES

30. Expedited Corporate Debt Restructuring: Tax Implications in the EU

I. Introduction 30.01

II. General Comments 30.06

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III. Issues Regarding Direct Taxes (Income and Corporation Tax) 30.18

IV. Issues Regarding Indirect Taxes 30.79

V Tax Liabilities Subject to Debt Restructuring Agreements 30.87

VI. Conclusion 30.95

31. Expedited Corporate Debt Restructuring: Competition Law Implications in the EU

I. Introduction 31.01

II. The EU Perspective 31.07

III. The UK Perspective 31.46

IV. Concluding Remarks 31.70

32. Expedited Corporate Debt Restructuring: Procedural Law Implications in the EU under the Insolvency Regulation

I. Introduction 32.01

II. General Background to the ECIR 32.03

III. Potential Assistance by the ECIR in in Restructurings 32.30

IV. Solvent Restructuring Mechanisms Outside the ECIR 32.68

V. Proposed Amendments to the ECIR 32.75

Index 781

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