Conversion of eligible liabilities to equity

If a recapitalization through conversion cannot be achieved due to the specific legal form of the concerned entity, other ways that are both in line with the national applicable law and with Directive 2014/59/EU (BRRD) should be explored in order for resolution authorities to be able to duly apply the bail-in tool. If this cannot be achieved by maintain the entity’s original legal form, Article 43(4) BRRD entitles resolution authorities to change it. Disclaimer: The answers clarify provisions already contained in the applicable legislation. They do not extend in any way the rights and obligations deriving from such legislation nor do they introduce any additional requirements for the concerned operators and competent authorities. The answers are merely intended to assist natural or legal persons, including competent authorities and Union institutions and bodies in clarifying the application or implementation of the relevant legal provisions. Only the Court of Justice of the European Union is competent to authoritatively interpret Union law. The views expressed in the internal Commission Decision cannot prejudge the position that the European Commission might take before the Union and national courts.