The need for a special restructuring procedure for insolvent entrepreneurs due to SARS-CoV-2

This text refers to the need for simple restructuring proceedings for entrepreneurs due to the crisis caused by the coronavirus epidemic. Some countries may be more deeply affected by the crisis, others may be more resilient to economic shocks. The comments are abstract. They do not refer to any particular legal system. Their purpose is to provoke a general discussion on the need to introduce into the legislation special rules regarding business insolvency as a result of the SARS-CoV-2 pandemic. The main assumption is as follows. The main purpose of insolvency law is to maximize creditors’ satisfaction. Meanwhile, in the event of a common, structural crisis, a more important value may be maintaining the entrepreneur’s business activity. Due to the need to quickly overcome the crisis, the entrepreneur’s restructuring should be preferred rather than bankruptcy resulting in liquidation.

bankruptcy, restructuring, coronavirus financial crisis