EU Reorganisation Directive: the new Finnish early reorganisation procedure

In Finland the implementation process of the Directive (EU) 2019/1023 on restructuring frameworks on the discharge of debt and disqualifications and on measures to increase the efficiency of procedures concerning restructuring insolvency and the discharge of debt (EU Reorganisation Directive) was concluded in May 2022 when the Finnish Parliament adopted an implementing act regarding changes to the Finnish Act on Company Reorganisation (47/1993 as amended) (the Reorganisation Act). The Directive’s requirements for a preventive restructuring framework were transposed mainly by building on and around the existing national reorganisation proceeding framework. As a result company reorganisation (in Finnish: yrityssaneeraus) as an insolvency proceeding under the Reorganisation Act now encompasses two alternative forms of reorganisation and restructuring of the viable business and debts of a financially distressed company: (i) the early reorganisation procedure (in Finnish:...