The restructuring directive's stay: Post‐implementation perspectives and asset‐deployment risks

Key Points

• This research investigates the effects of the Restructuring Directive's stay on asset deployment and security enforcement.
• Analyzed interactions between security agreements and executory contracts under the Restructuring Directive.
• Studied the implications for Member States' discretion in enforcing security agreements.
• Uncertainty regarding security agreements complicates debtors' ability to dispose of encumbered assets.
• The stay may negatively influence creditors' contractual rights, impacting the overall restructuring outcomes.