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LATEST NEWS & EVENTS New EC debt recovery tool is 'dangerous and draconian'  More companies could need the assistance of a commercial debt recovery solicitor as UK firms are facing a new European Commission (EC) measure that would allow courts in any EU country to freeze their assets. Corporate insolvency body R3 says the European Account Preservation Order (EAPO) is "dangerous and draconian", threatening business rescue in the UK. It warns that the new order does not offer the same protection afforded by similar procedures under English law. EAPO is aimed at helping creditors protect assets from being concealed or removed by directors engaged in insolvency and restructuring. However, R3 argues that the "loose drafting" of the order means it could be granted for a host of reasons unrelated to asset protection. "If EAPOs are supposed to protect assets from dodgy directors, the new regulation should reflect this objective," said R3 president Frances Coulson. "As they stand, the proposals are dangerous and draconian." It would "drive a coach and horses through attempts to rescue businesses formally or informally", she claimed, noting that cash flow is "critical" during rescue work. The British government must now consider opting out of the EAPO, R3 suggested. 
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