Class notes
Lecture 3 International Corporate Insolvency Law (ICIL)
- Course
- Institution
Thorough summary of the lecture of week 3.
[Show more]
Seller
Follow
steefl
Reviews received
Content preview
LECTURE3.1 – EUROPEAN INSOLVENCY REGULATION (EIR) BACKGROUND
→ EEC
→ Working Group for insolvency law.
→two track system:
1.General about jurisdiction and the enforcement
of judgments in civil and commercial matters.
2. The idea to have an insolvency law convention
→ Istanbul Convention – European Convention on Certain
International Aspects of Bankruptcy.
→ Convention on insolvency proceedings.
→ EIR 2000 (regulation, as convention could not be ratified,
because of political situation).
→ EIR 2015 (recast of 2000 version)
EU private international law framework
International Jurisdiction and Enforcement of Judgments in Civil and Commercial Matters
- 1968 Brussels Convention
- 2002 Brussels Regulation (44/2001)
- 2012 Brussels Regulation Recast (1215/2012)
Article1(2) Brussels Regulation Recast (1215/2012)
“This regulation shall not apply to:(…)
b) Bankruptcy: proceedings relating to the winding-up of insolvent companies or other legal persons,
judicial arrangements, compositions and analogous proceedings”
1
, Parallel provision including specifically these proceedings is stated in Recital 7 EIR 2015.
The Brussels recast is a sort of delineation of the EIR; the scope excludes art. 1(2)(b). A similar provision
can be found in one of the recitals of the EIR 2015.
EU Insolvency law framework
Within the EU framework, we can distinguish between three areas:
1. Ad hoc (examples)
- Transfer of Undertakings Directive: CouncilDirective2001/23/EC on the approximation of the laws of
the Member States relating to the safeguarding of employees' rights in the event of transfers of
undertakings, businesses or parts of undertakings or businesses.
o Replacing Council Directive 77/187/EEC of 1977.
- Package Travel Directive
o Directive (EU) 2015/2302 on package travel and linked travel arrangements, Replacing
Council Directive 90/314/EEC of 1990.
2. Procedural
- European Insolvency Regulation (EIR) 1346/2000 – entry into force 31 May 2002.
- European Insolvency Regulation Recast (EIR Recast) 2015/848 – entry into force 26 June 2017
3. Substantive – coordination and harmonization of insolvency law
- Commission Recommendation of 12 March 2014 on a new approach to business failure and insolvency
- EU Directive on restructuring and insolvency (2019)
3.2 – EIR 2015: KEY FEATURES AND INTERPRETATION
Key features
In contrast with the UNCITRAL, which focuses on recognition, the EIR focuses on:
1. Jurisdiction – what court is authorized and competent to judge on the matters presented to it.
2. Applicable law – which country/jurisdiction should be applied with questions related to the insolvency.
3. Recognition and enforcement of foreign judgments
4. Communication and cooperation
5. Insolvency proceedings of members of a group of companies – this is a new item in comparison to the
UNCITRAL Model Law and is important for the cross-border insolvency law.
With respect to feature 5 (group of companies) it is important that you see a difference in structure in the
insolvency regulations. Although the regulation mentions the feature of ‘group of companies’, the base
principle is one debtor:
Main Insolvency proceedings (Optional) Secondary Insolvency Proceedings
Debtor’s COMI (in an EU Member State) – apart Debtor’s ‘establishment’ within the territory of
from Denmark. another Member State.
Against the same debtor as the main proceeding –
territorial (secondary) proceedings.
Could be a rescue or liquidation proceeding May be reorganization or liquidation (EIR 2000:
only liquidation).
The same court appoints an ‘insolvency Effects restricted to local assets
practitioner (EIR 2000: liquidator)
2
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller steefl. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.23. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
56326 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now