Problems of New and Interim Financing in Restructuring Proceedings

Abstract

This article focuses on problems of new and interim financing in restructuring proceedings. It discusses the needs for additional financing in restructuring proceedings and how it should be granted. Also, the authors analyse the regulation and protection of interim and new financing in the European Union law. The authors argue that though Directive on restructuring and insolvency aims to increase effectiveness of restructuring proceedings, the regulation of interim and new financing triggers questions whether it is compatible with the goals of restructuring proceedings.