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Restructuring and Insolvency Directive Implementation Act

The aim of the new Restructuring and Insolvency Directive Implementation Act, RIRL-UG for short, is to rescue companies that get into financial difficulties but are not yet insolvent and to relieve honest individual entrepreneurs of their debts. Due to the Covid pandemic, the new insolvency directive is also available to consumers for debt relief.

The new insolvency directive will come into force on July 17, 2021, and thus also implement the EU directive in Austria, which is intended to facilitate and harmonize the Europe-wide restructuring of companies.

According to the new RIRL, the period after which insolvent companies are to be discharged from their debts may not exceed three years. In addition to the current five-year levy procedure, a short levy procedure (repayment plan) is to be introduced, in which the standard of probity is higher than under the current legal situation. Furthermore, an out-of-court solution, a so-called simplified procedure with the consent of the creditors , is available.

It is now necessary to form creditor classes, which include in particular creditors with secured claims (particularly liens), creditors with unsecured claims and creditors in need of protection, as well as creditors with lower claims. Only SMEs are not obliged to form creditor classes. The approval of these creditors is necessary for a restructuring plan. If the required majorities are not reached in the respective classes, a cross-class cram-down is still possible, whereby a restructuring plan is nevertheless possible.

In the future, the restructuring process is to remain secret as far as possible and its effects are to be limited to those affected. A publication in the edict file will only be made if the debtor so requests. An exception to this is the European restructuring process, as this must be published in the edict file.

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