#32026L0799Directive (EU) 2026/799 harmonising certain aspects of insolvency law
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This EU Directive establishes minimum harmonised rules on avoidance actions in insolvency proceedings across Member States. It defines when legal acts performed before insolvency can be challenged as detrimental to creditors, distinguishing between congruent coverage (normal debt satisfaction) and incongruent coverage (unusual or premature payments). The rules set minimum look-back periods for avoidance actions and protect ordinary course business transactions that exchange fair value directly with the debtor. New and interim financing provided during restructuring attempts receives protection in subsequent insolvencies. The Directive aims to reduce legal uncertainty, increase predictability of recovery values, and improve cross-border investment by addressing major divergences in national insolvency laws.
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Key Changes
- Introduces minimum harmonised rules on avoidance actions for legal acts detrimental to creditors
- Distinguishes between congruent coverage (requires proof of creditor knowledge of insolvency) and incongruent coverage
- Sets minimum look-back periods prior to request for opening of insolvency proceedings or member resolution
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Obligations
What this law requires
Member States must establish effective rules on avoidance actions to challenge legal acts that are detrimental to the general body of creditors and perfected prior to insolvency proceedings opening
Member States must define and apply minimum look-back periods for avoidance actions as specified in this Directive
Member States must provide protection for ordinary course business transactions where fair value is exchanged directly with the debtor from avoidance actions
Member States must protect new and interim financing provided during restructuring attempts from challenge in subsequent insolvency proceedings
Member States must transpose and implement this Directive while maintaining or adopting provisions on avoidance actions more favourable to creditors than those required by this Directive