will be fully discharged from their debts after a period of three years maximum, it provides for a directive which was proposed yesterday by the European Commission. In addition, the proposed directive is aimed at speeding up bankruptcy procedures and restructuring, which persist to the detriment of businesses that have gone bankrupt as, of course, and of the workers and the creditors.
According to data from the european Commission, Greece is ranked 23rd among the 28 member-states with regard to the effectiveness of bankruptcy procedures. The average time for the completion of the bankruptcy is 3.5 years in Greece, compared to 2 years is the eu average. Also, the rate of refund for the ενÎγγυους creditors after bankruptcy is 35,6% in Greece, compared with 65% in E.E.
The main elements of the proposed directive are the following:
Businesses that are experiencing financial difficulties, in particular smes, will have access to tools for early warning for the detection of the worsening economic situation and ensuring the restructuring at an early stage.
Flexible preventive restructuring frameworks will simplify the time-consuming, complex and expensive court procedures. The national courts will intervene, when needed, to safeguard the interests of stakeholders.
The debtor will have at its disposal a time-limited “breath,” four months before its enforcement, in order to facilitate negotiations and the successful restructuring.
Any dissident minority of creditors and partners will not be able to block the restructuring plans, but at the same time the legitimate interests will be safeguarded.
The new financing will have a special protection, increasing the chances of a successful restructuring.
Throughout the duration of the procedures for preventive restructuring, the workers will be fully protected by the labour legislation in accordance with the applicable legislation of the European Union.
Source
A second chance for entrepreneurs who go bankrupt
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