A few remarks on the relationship between the EIR and preventive restructuring frameworks

Despite recent amendments, many provisions of the EIR still reflect the paradigm of traditional court-based, liquidation-oriented insolvency proceedings. The disruptive emergence of innovative forms of restructuring frameworks, whose characteristics mark a sharp departure from such paradigm, pose increasing challenges to the cross-border insolvency regime envisioned by the EIR. An example of such challenges -the debate on the recognition regime for confidential preventive restructuring frameworks under German Law- is illustrated, and some conclusions are drawn regarding the need for a European framework for the recognition of Third Countries preventive restructuring proceedings.