Restructuring: Austria – Current Developments in Austrian Restructuring and Insolvency Law

In the latest issue of “Lexology In-Depth: Restructuring – Austria,” Markus Fellner, Florian Henöckl, and Elisabeth Fischer-Schwarz provide a comprehensive overview of current developments in Austrian restructuring and insolvency law.

The article highlights the growing importance of restructuring against the backdrop of ongoing economic challenges. In particular, the automotive, retail, real estate, and industrial sectors continue to face significant economic pressure.

The article examines the various restructuring options available in Austria—ranging from out-of-court restructurings to reorganization and insolvency proceedings, and including restructuring proceedings under the Restructuring and Insolvency Directive Implementation Act. In particular, it outlines the prerequisites and key procedures for each type of proceeding, as well as the central requirements for restructuring and reorganization plans.

In addition, the article addresses current legal developments at the European level. Among other things, it focuses on planned regulations regarding pre-pack procedures, the avoidance of insolvency transactions, and the duties of executives in connection with filing for insolvency.

Practical restructuring instruments such as debt-equity swaps and restructuring trusts are also discussed. The article thus highlights the range of available instruments and underscores the importance of addressing a corporate crisis early and in a structured manner.

In conclusion, the authors provide an outlook on the future development of Austrian restructuring and insolvency law and emphasize the ongoing importance of a flexible, restructuring-oriented approach in light of growing economic challenges.

Read the full article HERE