EU requirement for national insolvency registers to be established in all Member States (Recast Insolvency Regulation 2015 ((EU) 2015/848))

Will Nevin Partner T +44 20 7466 2199 [email protected]

UK TIMELINE

Kevin Pullen Partner T +44 20 7466 2976 [email protected]

2017Q4 (Oct-Dec)

The European Commission has approved, under EU state aid rules, Germany’s plans to grant Air Berlin a temporary €150 million bridging loan. The measure will allow for the orderly winding-down of the insolvent airline without unduly distorting competition in the Single Market.

La Commissione europea ha approvato, in base alle regole comunitarie in materia di aiuti di Stato, il piano della Germania per concedere ad Air Berlin un prestito temporaneo di 150 milioni di euro. La misura permetterà una ristrutturazione ordinata della compagnia aerea insolvente senza distorcere indebitamente la concorrenza nel mercato unico.

The Italian Government has been delegated to enact a comprehensive restatement of the whole set of rules of insolvency procedures, with specific innovative addresses regarding (to mention only the most important) the concordato preventivo procedure, venue rules, an out-of-court mediation alert process to timely address a risk of insolvency, new forms of security and a streamlined set of priorities among creditors

Introduction

The European Commission ("Commission") has released a consultation paper to evaluate the merits of introducing measures to support secondary markets for distressed debt and the development of a new, contractual-based loan security obligation.

Consultation

There is much to admire in the EU's handling of the Italian banking crisis, but in allowing two lenders to escape BRRD rules, it has raised questions on the consistency of the EU state aid and resolution framework.

After ten years of operation the European Insolvency Regulation (Regulation (EC) No. 1346/2000) has been extensively reviewed by the European Commission, European Parliament and Council. On 20 May 2015, the European Parliament approved the result of that review: the recast Insolvency Regulation (Regulation (EU) No. 2015/848) (the “Regulation”), which applies to insolvency proceedings commencing from 26 June 2017.

European Union

The European Commission has published forms to be used under the Recast European Insolvency Regulation (Recast EIR).

Insolvency Practitioners will need to be familiar with the forms and the circumstances in which they should be used.

What are the new forms?

In summary, the new forms are:

1. A standard notice form to be used by courts or Insolvency Practitioners to inform known foreign creditors of the opening of insolvency proceedings;

2. A standard claim form to be used by foreign creditors to lodge claims;

European Union