Article 21 — Pre-pack proceedings

1. Member States shall ensure that pre-pack proceedings are available at least for debtors that are likely to become insolvent in accordance with national law. Member States may provide that the preparation phase cannot be initiated where the debtor is unable to pay its debts as they fall due in accordance with national law. 2. Pre-pack proceedings may, under national law, be separate proceedings or part of existing insolvency proceedings. 3. Member States shall ensure that debtors that enter pre-pack proceedings remain totally, or at least partially, in control of their assets and the day-to-day operation of their business during the preparation phase. 4. National law applies to matters not regulated by this Title, including the ranking of claims, the distribution of proceeds, the responsibilities and liability of the debtor and the debtor’s directors, the remuneration of the insolvency practitioner and the nature, scope and form of creditors’ participation, except, where applicable, with respect to the approval of the sale.