An overview of legal regulation models for solvency recovery in the EU countries

The article examines the models of insolvency regulation in EU countries, specifically in France, Germany, Belgium, Poland, and the Czech Republic. The French model is based on a comprehensive approach that includes preventive monitoring mechanisms, conciliation procedures between debtors and creditors, and an active role of judicial authorities in the restructuring process. Germany employs early detection tools for financial difficulties and legally mandates corporate executives to monitor the financial health of enterprises while allowing flexible restructuring procedures. The Belgian model emphasizes early identification of insolvency risks, the functioning of enterprise chambers for financially distressed businesses, and the implementation of judicial reorganization mechanisms that enable companies to avoid bankruptcy through creditor agreements. Poland prioritizes restructuring over liquidation, clearly distinguishing between solvency recovery mechanisms and bankruptcy procedures while offering various restructuring options depending on the debtor’s financial condition. The Czech Republic provides preventive restructuring mechanisms with the possibility of plan approval without unanimous creditor consent (cross-class cram-down), judicial moratoriums, and an enhanced role of the court in the restructuring process. It has been determined that a key feature of insolvency regulation in the studied EU countries is the focus on preserving viable enterprises through early identification of financial risks, the implementation of restructuring measures, and the establishment of judicial oversight procedures for business recovery plans. However, differences manifest in the level of state involvement, the role of the judiciary, and the scope of rights granted to debtors and creditors. The article highlights the key aspects of transposing EU Directive 2019/1023 into national legislations and evaluates the effectiveness of the applied mechanisms in business preservation, creditor protection, and economic risk minimization.

solvency, restructuring, bankruptcy, EU Directive 2019/1023, preventive restructuring, judicial reorganization, financial recovery, legal regulation, creditors, debtors