CROSS-BORDER INSOLVENCY – EUROPEAN UNION
41.1 Introduction (amended February 2010)
The approach to insolvency law differs widely between nations, both in terms of the practical approaches to dealing with insolvency and in respect of matters of the principles of public policy. This can lead to difficulties in dealing effectively with insolvencies that have a cross-border dimension. Recent developments in international law have improved the position in respect of the recognition of foreign insolvency proceedings and, within the EU, clarification of the law to be applied in particular circumstances.
The information and advice given in this chapter covers the EC Regulation on Insolvency Proceedings, whilst Chapter 42 covers the UNCITRAL Model Law on Cross-Border Insolvency and procedures under the Act for the co-operation of courts in relation to foreign proceedings.
Chapter 43.0 provides official receivers with guidance and practical advice (including template letters) to assist when dealing with a bankrupt’s affairs overseas.
The chapter is divided into the following parts (amended February 2010):
Part 1 – History and background of the EC Regulation on Insolvency Proceedings (paragraphs 41.2 to 41.7)
Part 2 – Overview of the EC Regulation on Insolvency Regulation (paragraphs 41.8 to 41.19)
Part 3 – Opening of proceedings and national laws applicable under the EC Regulation (paragraphs 41.20 to 41.47)
Part 4 – Recognition of insolvency proceedings throughout member states and the effects of such recognition (paragraph 41.48 to 41.59)
Part 5 – Centre of Main Interests (paragraph 41.60 to 41.66)
The Chapter contains the following annexes (amended February 2010):
Annex A – Front sheet for NORD1EU
Annex B - "Lodgement of claim" in all official languages of the EU
Annex C – Letter explaining to an enquiring creditor why insolvency proceedings have been opened in the UK.
Annex D – Letter to foreign insolvency administrator where secondary proceedings opened overseas.
The following abbreviations have been used in this chapter;
COMI – Centre of Main Interests
CVL – Company Voluntary Liquidation
EU – European Union
The Regulation - EC Regulation on Insolvency Proceedings
UNICITRAL – United Nations Commission on International Trade Law
[On to Part 1 – History and background of the EC Regulation on Insolvency Proceedings]