The Pre-Pack Mechanism in Insolvency

Abstract

The research of this Thesis has been dedicated to the pre-pack proceeding regulation which has been recently introduced by Directive harmonising certain aspects of insolvency law. The esssence of the pre-pack procedure, its advantages and problemaric issues have been investigated. The Thesis demonstrated the practice of the pre-pack in different countries which have already imposed into their insolvency legislation this tool. The investigation has been mostly focused on the analysis of the stages of the pre-pack proceeding and its main standards established by Directive harmonising certain aspects of insolvency law. Having conducted the thorough research of the pre-pack regulation on the EU level and having explored the theoretical background of this tool, the preparatory stage, the liquidation phase and common provisions of the pre-pack proceeding have been analyzed. The research has revealed that although Directive harmonising certain aspects of insolvency law address main issues of the pre-pack, some concerns still may arise during its real application in MS. It was explored that the some adjustements to the EU legal instrument should be made in order to strengthen the position of the unsecured creditors. Additionally, the Thesis demonstrated that employees are not provided with sufficient and fair safeguards during the pre-pack. In order to create the well-designed insolvency regime, it has been proposed to establish the company viability assessment as an obligatory one during the pre-pack proceeding.