In December 2022, the European Commission published its long expected proposal for a new insolvency directive (Insolvency-III-Directive). The goal of the directive is the minimum harmonization of certain aspects of material insolvency law in the member states of the European Union. Besides certain rules on insolvency avoidance actions, directors’ duties and a special winding-up proceeding for insolvent microenterprises, the Insolvency-III-Directive provides for the implementation of a so called pre-pack-proceeding in the member states of the European Union. Pre-pack proceedings according to the Insolvency-III-Directive are characterized by the fact that insolvent debtors are enabled to prepare the sale of their enterprise to investors in a so-called preparation phase. To support the sales process, national law shall provide for a moratorium during the preparation phase. Depending on the decision of the national legislator, the sale of the insolvent enterprise will be then either confirmed by a court in a fast-track liquidation proceeding or the court runs a public auction.
German insolvency law does not know a special pre-pack proceeding for insolvent enterprises until now. Thanks to our international network and expertise we can use the experience of our Dutch and British colleagues, which have already established relevant know/how with regard to national pre-pack proceedings.