Businesses drifting to the brink of insolvency are given a lifeline – Hungarian bankruptcy law is renewed

On 1 July 2022, the new Restructuring Act will enter into force, which could provide a solution to the early management of financial difficulties for undertakings on the frontier of insolvency, to encourage their recovery and to restore their solvency. The new pre-insolvency restructuring procedure may be best an alternative to bankruptcy proceedings; in this case, however, the debtor can essentially decide for himself which creditors he negotiates with and who he involves in the process.