The Development and Confirmation of the Restructuring Plan of Legal Entities: Impact of EU Law and Problematic Aspects

Abstract

The master thesis is dedicated to the procedural and substantive challenges legal entities face during the development and confirmation of a restructuring plan. It analyses the collective nature of restructuring proceedings, identifying competing interests of all stakeholders and the mechanisms through which these interests may be balanced. The thesis examines the development of the restructuring plan, particularly the requirements for its content, the stay of individual enforcement actions, and the specific difficulties encountered in cross-border proceedings, such as barriers to creditor participation and divergent national laws. It further highlights the disproportionate challenges MSEs face, including an excessively long preparation phase and insufficient resources to design a realistic, feasible plan. The research further reveals core challenges which arise during the confirmation of the plan by judicial or administrative authority. It investigates the conditions under which a restructuring plan affecting dissenting parties may be approved, the application of the cross-class cram-down mechanism, the judicial assessment of the plan's viability, and the appeal of the confirmed plan. The research demonstrates that, while the Restructuring Directive provides a foundation for restructuring proceedings, significant gaps remain in harmonising provisions for cross-border restructuring proceedings and for proceedings concerning MSEs. The thesis concludes with targeted recommendations, proposing legislative reforms to enhance the effectiveness of restructuring proceedings.