Overview

One of the primary objectives of the reformed Austrian Insolvency Act, which entered into force on 1 July 2010, was to increase the number of successful corporate reorganisations and to facilitate the continuation of business operations during financial crises.

After the initiation of insolvency proceedings, the creditors of an insolvent debtor shall not be entitled to revoke or terminate contracts that are essential for continuing the debtor's business operations.

In this briefing, CEE specialists Schoenherr discuss the key facets of the Insolvency Act; how it provides clear and coherent rules for restructuring proceedings; how corporate reorganisation is now conducted by the managing director; what would happen if the debtor fails to meet certain requirements under statutory law; and the limitations regarding the termination of contracts.

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