An analysis of insolvency laws which forms a basis for new amendments was completed with the participation of Peeter Viirsalu

14.07.2020 An analysis of insolvency laws which forms a basis for new amendments was completed with the participation of Peeter Viirsalu

Partner Peeter Viirsalu participated as an expert in the preparation of an analysis concept regarding the possibilities for increasing the efficiency of Estonian insolvency proceedings, which was drafted in the framework of the 2nd stage of insolvency law revision initiated by the Estonian Ministry of Justice.

The purpose of the analysis concept was to evaluate the legal framework concerning reorganisation and discharge of obligations for natural persons in Estonia, its functioning in practice and ways for the transposition of Directive (EU) 2019/1023 of the European Parliament and of the Council of 20 June 2019 on preventive restructuring frameworks, on discharge of debt and disqualifications, and on measures to increase the efficiency of procedures concerning restructuring, insolvency and discharge of debt, and amending Directive (EU) 2017/1132 (Directive on restructuring and insolvency).

The analysis covered, inter alia, the following topics:

  • access to reorganisation proceedings and conditions for their initiation, effects of reorganisation to the claims of creditors, extent of involvement of courts and possibilities for justifying earlier submission of reorganisation applications;
  • aiding negotiations conducted over reorganisation plans, incl. debtors’ right to maintain right of disposal of assets, stay of enforcement actions and consequences;
  • content, adoption and confirmation of reorganisation plans, cross-class cram-down and consequences;
  • facilitation of interim and new financing and protection of other transactions, duties of directors, potential measures to increase the efficiency of proceedings concerning reorganisation and discharge of obligations;
  • reduction of the length of the period of discharge of obligations for natural persons and choosing and moving between different insolvency proceedings concerning natural persons, necessity of involving a practitioner;
  • linkage of different insolvency proceedings and possibilities for transition, removal of confidentiality of reorganisation proceedings.

The full analysis of the ways to increase the efficiency of Estonian insolvency proceedings is available here: https://www.just.ee/sites/www.just.ee/files/analuus-kontseptsioon.pdf (in Estonian).