Cramped by cramdowns: national hurdles for EU insolvency plan

Proposal to harmonise rules on debt stays and holdout creditors touches on sensitive issues

Man with ball and chain jumping over hurdles

The Council of the European Union is seeking a political compromise on an unprecedented attempt to harmonise insolvency rules in the 28 member states – a “very, very controversial” proposal, according to one lobbyist, which holds the promise of a partial solution to Europe’s bad loan problem, but already has some industry observers worrying about an erosion of creditors’ rights.
 
The draft text of the directive on insolvency harmonisation was published by the European Commission in November 201

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