Emergency COVID-19 Legislation in the Area of Insolvency and Restructuring Law
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Stephan Madaus
The appearance of the COVID-19 in Europe has prompted lawmakers to introduce public health measures that inevitably hurt the economy by reducing economic activity and business revenues. The foreseeable risk that the pandemic could be followed immediately by a bankruptcy epidemic led to the adoption of rules related to insolvency and restructuring laws in emergency legislation in most European countries. These rules aim at avoiding businesses to become insolvent either by suspending insolvency tests (see II.) or by providing cash support and debt moratoria (see III.). They may also contain measures that indirectly affect insolvency and restructuring proceedings (see IV.). This paper explains the logic behind emergency legislation and the specific rules adopted in European countries.
Note
The research has benefitted from the financial aid of the Spanish Government through the Research Project RTI2018-095066-B-I00.
© 2020 Walter de Gruyter GmbH, Berlin/Boston
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Articles in the same Issue
- The Response of the European Central Bank to the Current Pandemic Crisis: Monetary Policy and Prudential Banking Supervision Decisions
- Pandemic-Resistant Corporate Law: How to Help Companies Cope with Existential Threats and Extreme Uncertainty During the Covid-19 Crisis
- Corporate Law Rules in Emergency Times Across Europe
- Emergency COVID-19 Legislation in the Area of Insolvency and Restructuring Law
- Takeover Bids in Europe in Times of a World-wide Pandemic Threat: A Delicate Balance Between the Fundamental Freedoms and the Protection of Europe’s and the Member States’ Strategic Assets
- EU Financial Market Governance and the Covid-19 Crisis: ESMA’s Nimble, Responsive, and Speedy Response in Coordinating National Authorities through Soft-Law Instruments
- Banning Cassandra from the Market? An Empirical Analysis of Short-Selling Bans during the Covid-19 Crisis
