'executory contracts' means contracts 'executory contracts' means contracts, between the debtor and one or more excluding financial facilities such as creditors under which both sides still have undrawn credit facilities, revolving obligations to perform at the moment the credit lines and offers for financing, stay of individual enforcement actions is between the debtor and one or more ordered; creditors under which both sides still have obligations to perform at the moment the stay of individual enforcement actions is ordered; Justification Including undrawn lines of credits and offers for financing that have not been used at the time of the stay in the definition of contracts’ would lead to ‘executory the debtor incurring new debts at a time when insolvency is already likely and often imminent. In that case, the financier would not be afforded the same protections given to grantors of new and interim financing in Article 16, even though the credit would serve the same purpose. This would make financial creditors very hesitant to extend lines of credits or offer financing if there was any doubts about the future solvency of the business, particularly if the business is an SME. Incurring new debts during the stay based on credit lines or offers for financing granted before the restructuring procedure would also have a very negative impact on third parties, including natural persons, who have guaranteed the debtors credit line or pledged assets as security. Amendment 6 Definitions – Article 2(6) formation' means the grouping of 'class formation' means the grouping of affected creditors and equity holders in a affected creditors and equity holders in a restructuring plan in such a way as to restructuring plan in such a way as to reflect the rights and seniority of the reflect the rights and seniority of the affected claims and interests, taking into affected claims and interests, taking into account possible pre-existing entitlements, account possible pre-existing entitlements, liens or inter-creditor agreements, and liens or inter-creditor agreements, and their treatment under the restructuring their treatment under the restructuring plan; plan; for the purposes of adopting a restructuring plan, creditors are divided into different of “classes creditors” as regulated by Member States, where as a minimum, secured and unsecured claims are treated in separate classes; Justification It is necessary to ensure that secured and unsecured creditors are treated in separate classes.
'executory contracts' means contracts between the debtor and one or more creditors under which both sides still have obligations to perform at the moment the stay of individual enforcement actions is ordered; 'executory contracts' means contracts, excluding financial facilities such as undrawn credit facilities, revolving credit lines and offers for financing, between the debtor and one or more creditors under which both sides still have obligations to perform at the moment the stay of individual enforcement actions is ordered; Justification Including undrawn lines of credits and offers for financing that have not been used at the time of the stay in the definition of ‘executory contracts’ would lead to the debtor incurring new debts at a time when insolvency is already likely and often imminent. In that case, the financier would not be afforded the same protections given to grantors of new and interim financing in Article 16, even though the credit would serve the same purpose. This would make financial creditors very hesitant to extend lines of credits or offer financing if there was any doubts about the future solvency of the business, particularly if the business is an SME. Incurring new debts during the stay based on credit lines or offers for financing granted before the restructuring procedure would also have a very negative impact on third parties, including natural persons, who have guaranteed the debtors credit line or pledged assets as security. Amendment 6 – Definitions Article 2(6) formation' means the grouping of affected creditors and equity holders in a restructuring plan in such a way as to reflect the rights and seniority of the affected claims and interests, taking into account possible pre-existing entitlements, liens or inter-creditor agreements, and their treatment under the restructuring plan; 'class formation' means the grouping of affected creditors and equity holders in a restructuring plan in such a way as to reflect the rights and seniority of the affected claims and interests, taking into account possible pre-existing entitlements, liens or inter-creditor agreements, and their treatment under the restructuring plan; for the purposes of adopting a restructuring plan, creditors are divided into different “classes of creditors” as regulated by Member States, where as a minimum, secured and unsecured claims are treated in separate classes; Justification It is necessary to ensure that secured and unsecured creditors are treated in separate classes.
170317_parstrukturesanas_direktiva_FM_2pielikums.docx