Cross-border insolvency of multinational groups

WGV aims to agree a set of key principles and draft text for a regime to address crossborder insolvency in the context of enterprise groups (defined widely to mean any entity, regardless of its legal form, that is engaged in economic activities and may be governed by insolvency law). This has started to take a form most suited to a stand-alone supplement to the Model Law. The Group’s secretariat produced a draft legislative text, incorporating three principles agreed by WGV. The three principles are:

Scope 

The recast EIR continues to apply to all European member states other than Denmark and has been extended in scope to new categories of proceedings, including rehabilitation proceedings, which are set out in annex A. The emphasis remains on collective proceedings and, consequently, the UK’s receivership and administrative receivership regimes remain outside the scope of the recast regulation. 

European Union

European Union

Alert The Impending First Revision to the EU Insolvency Regulation: An Update 16 December 2014 The latest draft of the First Revision published on 20 Nov. 2014 indicates measured but extensive amendments to the EU Insolvency Regulation (‘EIR’). The most significant is the EU policy shift evidenced by the proposal to extend the EIR’s application from its currently narrow and primarily liquidation-based proceedings to a broader range of measures that are focused on rescue and that have recently been implemented in various jurisdictions.

In an August 2014 Alert,¹ we reported that (most of) the Banking Recovery and Resolution Directive (‘BRRD’)2 that was adopted on 15 May 2014 was required to be implemented by the EU Member States through local legislation by 1 January 2015.

Yesterday, the European Commission announced that it was termporarily approving, under E.U.

Today, the European Commission announced its approval, under EU State Aid rules, of the restructuring of Latvian bank, Parex, which was partially nationalized in November 2008.

Yesterday, Dexia S.A., a European bank that was rescued by the French and Belgian governments in September 2008, announced that it would no longer rely on state guarantees for future funding. All debt instruments issued prior to June 30, 2010 will remain guaranteed by the government pursuant to their terms.

Last Friday, financial services group Dexia SA announced that it had reached an agreement with the European Commission relating to its restructuring plan. Dexia had previously received approximately €6.4 billion in bailout money from Belgium, France and Luxembourg. Pursuant to the negotiated restructuring plan, Dexia will: