European Union: Insolvency/Bankruptcy

The European Union has introduced Directive (EU) 2026/799, establishing pre-pack proceedings that allow distressed businesses to be sold confidentially before formal insolvency begins. Portugal now faces the challenge of transposing these provisions into national law by 2029, requiring the creation of an entirely new legal framework to preserve business value and protect creditors.

When a company enters bankruptcy proceedings within the European Union, insolvency practitioners must navigate a complex intersection of duties: administering the estate while ensuring strict compliance with GDPR requirements for processing personal data. The recent Co-Med healthcare bankruptcy in the Netherlands illustrates how modern insolvency practice requires careful handling of sensitive information, from medical records to employee data, while balancing statutory obligations with fundamental privacy

Where the company still has assets, liabilities or other matters to resolve, voluntary liquidation provides a formal way of bringing its affairs to an end. A licensed insolvency practitioner is appointed as liquidator to deal with outstanding liabilities, realise or distribute assets and complete the winding-up before dissolution.