On May 20, 2016, the EBA published translations of its Guidelines on business reorganization plans following a bail-in. The BRRD requires a firm that has been recapitalized through a bail-in to produce a reorganization plan that sets out how the firm will be restored to long-term viability and to submit progress reports twice annually throughout the reorganization period.
The EBA's Guidelines provide the minimum criteria that the business reorganization plan must fulfill for approval by a resolution authority and set out how national regulators and resolution authorities should assess whether the business reorganization plan is credible, realistic and consistent with other business plans prepared by the firm in parallel. The Guidelines will apply to resolution authorities and national regulators from August 20, 2016.
The Guidelines are available at: http://www.eba.europa.eu/documents/10180/1312845/EBA-GL-2015-21+GLs+on+Business+Reorganisation+Plans.pdf/76c11392-79dc-4db4-bbe5-772133d2f715.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
