Business Restructuring and Insolvency: What Changes with the Correction of Directive 2019/1023

Key data

If your company is facing financial difficulties, the European legal framework provides you with tools to act before the situation reaches creditor insolvency. Directive (EU) 2019/1023, whose technical correction is published on 09/04/2026 with reference CELEX:32019L1023R(03), establishes procedures for preventive restructuring, debt discharge and disqualifications throughout the European Union. In Spain, this directive was already transposed through Law 16/2022 reforming the consolidated text of the Insolvency Law.

The published correction is technical in nature: it does not alter the substantive regulatory content nor introduce new obligations. Its objective is to ensure the correct application and interpretation of the rule in all Member States. However, its publication is an opportunity to review whether your company knows about and takes advantage of the mechanisms that this directive makes available.

What does this regulation establish?

Directive (EU) 2019/1023 articulates three major regulatory blocks that directly affect companies and entrepreneurs in difficulty:

The directive also amends Directive (EU) 2017/1132 and aims to increase the efficiency of restructuring, insolvency and debt discharge procedures throughout the EU. The technical correction published in 2026 does not alter any of these contents: its function is to ensure that the text is interpreted homogeneously in the 27 Member States.

Economic and operational impact

For Spanish companies, the direct impact of this correction is limited: Law 16/2022 already incorporated the directive into Spanish law. There are no new costs, deadlines or obligations arising from this publication.

However, the framework that this regulation consolidates does have relevant economic and operational consequences for those in financial difficulty:

• Access to preventive restructuring: Viable companies can negotiate with their creditors and restructure their debt before entering insolvency, avoiding the costs and stigma associated with formal insolvency proceedings.
• Second chance for entrepreneurs: Disqualification periods are limited, allowing insolvent entrepreneurs to return to economic activity within reasonable timeframes without indefinitely carrying the consequences of a previous insolvency.
• Debt discharge: Discharge mechanisms allow insolvent persons to free themselves from their debts and start over, reducing the long-term economic impact of an insolvency situation.
• European uniformity: The technical correction reinforces that the rules are the same throughout the EU, which is relevant for companies with operations in several Member States.

Who does it affect?

The groups directly affected by the regulatory framework that this correction consolidates are:

• Companies in financial difficulty that want to explore restructuring options before creditor insolvency.
• Insolvent debtors (natural and legal persons) seeking debt discharge or limitation of disqualifications.
• Creditors (banks, suppliers, public administrations) participating in restructuring or insolvency processes.
• Insolvency professionals (insolvency administrators, specialized lawyers, financial advisors) managing these procedures.
• Companies with operations in several EU countries that need consistency in the application of insolvency rules.
• CFOs and financial executives responsible for managing insolvency risk in their organizations.

Practical example

A Spanish manufacturing company with 80 employees accumulates debts with suppliers and financial entities after two years of losses. Before Directive 2019/1023 and its transposition by Law 16/2022, the only formal way out was creditor insolvency, with the reputational and economic costs that entails.

With the current framework, this company can resort to a preventive restructuring procedure: it negotiates a plan with its main creditors, restructures its debt and maintains operations. If the plan is viable and has sufficient creditor support, it can be approved without needing to enter formal insolvency.

If the owner entrepreneur, as a natural person, had reached insolvency, the same framework allows him to request debt discharge and benefit from the limitation of disqualification periods, being able to restart within a reasonable timeframe. The technical correction published in 2026 does not change this scenario, but ensures that the rules are applied identically if the company also operates in other EU countries.

What should companies do now?

1. Evaluate your company's financial situation: If you detect liquidity or solvency difficulties, act before the situation becomes irreversible. The preventive restructuring framework is only available for viable companies.
2. Review if Law 16/2022 applies to you: The Spanish transposition is already in force. Consult with a specialist in insolvency law to see if your company could benefit from a preventive restructuring procedure.
3. Identify your main creditors: Restructuring procedures require negotiation with creditors. Map your debt structure and key stakeholders before initiating any process.
4. Inform yourself about the second chance: If you are an entrepreneur as a natural person and have gone through insolvency, debt discharge mechanisms and limitation of disqualifications can allow you to restart. Check the deadlines and requirements of Law 16/2022.
5. If you operate in several EU countries: Verify that restructuring or insolvency procedures in each country comply with the framework harmonized by Directive 2019/1023, especially following this technical correction.