Avoidance Transactions in Out-of-Court Workouts, and Pre-Insolvency Procedures, and Possible Safe Harbours

Abstract

They key questions analysed in this chapter are (a) whether there are avoidance powers available in the pre-insolvency proceedings or in the out-of-court workout procedures; and (b) whether the national law of the countries surveyed provide any special protection from avoidance for agreements achieved in such proceedings or workouts. As an illustrative example: if, for instance, new finance is agreed, either by individual arrangement or as part of a restructuring plan, are these arrangements exempted, under specific circumstances, from avoidance actions?