The efficiency of preventive restructuring procedures: evidence from France

The paper evaluates the EU's Directive on restructuring and insolvency law, comparing the effectiveness of preventive restructurings with standard bankruptcies, finding that while preventive restructurings lead to higher survival rates, they also result in worse financial performance, challenging the notion that early restructuring is uniformly beneficial and highlighting the need for careful design of such procedures to avoid enabling non-viable firms to persist.