Global Insolvency | Daily News Headlines on Insolvency Developments across the Globe

Judgment of 14 November 2018, C 296/17, Wiemer & Trachte – is the CJEU right? by Angel Ganev, Simeon Simeonov, Valentin Bojilov

The purpose of this article is to present and analyse a 2018 judgment of the Court of Justice of the European Union (hereinafter referred to as the “Court” or “CJEU”), delivered upon a referral for a preliminary ruling of the Bulgarian Supreme Court of Cassation and aimed at the interpretation of Article 3(1) of Council Regulation (EC) No 1346/2000 of 29 May 2000 on insolvency proceedings (hereinafter the “EIR 2000”) and, more specifically, the jurisdiction of the courts of the Member States to hear cases which derive directly from insolvency proceedings and which are closely connected

New toolbox, new questions by Professor Dr Dominik Skauradszun and Walter Nijnens, LL.M.

The brand new Directive on Preventive Restructuring Frameworks (EU No 2019/1023 of 20 June 2019) presents a promising toolbox for restructuring debtor companies, containing features such as a very early starting point, the debtor-in-possession approach, a flexible stay, the restructuring plan’s adoption out-of-court and the cross-class cram-down.

Country reports from the Czech Republic and Germany by Petr Sprinz, Jiří Rahm, Michael Thierhoff and Axel Roth

The Czech Republic: In January, an amendment to the Bond Act came into effect. The amendment prepared by the Czech Ministry of Finance comprises new rules governing secured bonds as well as the introduction of a security agent in connection with bonds.

German ESUG: In 2012 the German legislator enacted a landmark reform of the German Insolvency Code aiming at three main goals...

Wrongful trading in Europe by Mihai Lanţoş

All modern European systems of law in force today provide for some sort of liability system for directors of companies, triggered by situations related to insolvency. If in some cases the obligations of the directors or the liability cases are loosely defined (holding the directors liable if general duties are disregarded), other pieces of legislation provide detailed and specific situations for misconduct leading to personal liability.

German Group Insolvency Law Now Effective - What Will It Bring?

Exactly one year after the publication in the federal gazette, the new German group insolvency law has become effective on April 21, 2018. For years, the group insolvency law reform was under discussion in legislature and by practitioners and academics. Then, the German parliament – the Bundestag – passed the reform surprisingly fast right before the end of the four-year legislative session in 2017. Since then the discussion on the German group insolvency law has calmed down. Under European law, the new group insolvency law in the European Insolvency Regulation no.

Schuldschein Forecast – Rain or Shine?

Schuldschein loans have been in the news recently. Historically Schuldschein loans were predominantly borrowed from German lenders by German companies with a strong credit profile who accessed the private market for these German law governed loans. In the last few years the market has internationalised significantly, with non-German borrowers and lenders entering the market for this form of financing. Some reports suggest that, since the financial crisis, the percentage of non-German borrowers in the market has grown from less than 20% to nearly 50%.

Virtual secondary insolvency proceedings under the recast EIR

The 6th European Insolvency & Restructuring Congress (German Bar Association in cooperation with INSOL Europe) provided the opportunity to further analyse the issue of dealing with the new virtual secondary insolvency proceedings according to Article 36 EIR. Currently, it appears that the most urgent question for insolvency practitioners is the preparation of such virtual proceedings. As this task requires comprehensive preparation, pursuant to Article 36 (10) EIR, also including avoiding personal liability, the article outlines the first steps to take.

Senior management responsibility in banks

Regulators have made clear their view that responsibility for the culture of a bank sits at the top; if senior management create the right culture, good regulatory practice and procedures will naturally follow. Following the financial crisis banks’ senior management have come under increasing regulatory scrutiny and in some jurisdictions proposals have been put forward to make it easier to make them accountable for their actions. To help you keep up to date with current developments, we have produced a comparative analysis of how senior management responsibility in banks is being treated in

Paymill GmbH: Successful transfer of German internet based payment system

Following successful provisional debtor-in-possession insolvency proceedings led by attorney Vincenz von Braun and a team from anchor Rechtsanwälte working in close collaboration with the provisional insolvency monitor, attorney Dr. Christian Gerloff (Gerloff Liebler Rechtsanwälte), Munich financial technology start-up Paymill GmbH has been transferred to the Swiss investor, Klick & Pay, in what is known as a reorganisation by transfer. Under the terms of the reorganisation, the company's management had to make only 18 of the original 65-strong workforce redundant.

Federal Court of Justice (BGH): In principle, the lex fori concursus determines whether a foreign pension is subject to attachment

The German Federal Court of Justice has recently held (BGH, court order of 20.7.2017 – IX ZB 63/16) that the scope of the insolvency estate is determined by the lex fori concursus and that this also applies to earned income and pension income. The extent to which protection from enforcement can prevent attachment of the insolvency estate is therefore substantively a matter for the law of the state in which proceedings are commenced. Click here for more..