At 11pm on 31 December 2020, the UK left the European single market at the end of the transition period agreed as part of the 2019 Withdrawal Agreement. The EU-UK Trade and Cooperation Agreement that was reached on Christmas Eve made no provision for continued recognition of, or co-operation in, insolvency and restructuring proceedings. This briefing considers the implications of this and we examine how:
The Insolvency Regulation aims to establish procedural rules on jurisdiction and applicable law in relation to insolvency proceedings, and to aid the mutual recognition of cross-border insolvency proceedings in EU Member States. It is intended to deter parties from forum shopping within the EU in relation to insolvency proceedings. However it does not seek to harmonize substantive insolvency law.
At 11pm on 31 December 2020, the UK left the European single market at the end of the transition period agreed as part of the 2019 Withdrawal Agreement. The EU-UK Trade and Cooperation Agreement that was reached on Christmas Eve made no provision for continued recognition of, or co-operation in, insolvency and restructuring proceedings. This briefing considers the implications of this and we examine how:
The Supreme Court has held that, in order to open secondary proceedings in England under EC Regulation 1346/2000 on Insolvency Proceedings, the company’s “establishment” within the jurisdiction must be a fixed place of business that is involved in a business activity that consists of dealings with third parties: The T
The High Court has held that s.236 of the Insolvency Act 1986 (“IA 1986”) does not have extra-territorial effect, so that the court is not generally permitted to make an order requiring a person outside the UK to produce books and papers and give an account of their dealings with an insolvent company: Re Akkurate Ltd (in Liquidation) [2020] EWHC 1433 (Ch).
timeline - a guide to the legal milestones ahead CALENDA R OF KEY ISSUES (UK PERSPECTIVE) MAY 2014 LEGAL GUIDE ABOUT HERBERT SMITH FREEHILLS We are one of the world’s leading law firms. We advise many of the biggest and most ambitious organisations across all major regions of the globe. Our clients trust us with their most important transactions, disputes and projects because of our ability to cut through complexity and mitigate risk. We can help you thrive in the global economy.
EU (Withdrawal) Bill may be passed by UK Parliament. Its purpose is to repeal the European Communities Act 1972 and, so far as possible, import EU law that would otherwise fall away into UK law
The Construction (Retention Deposit Schemes) Bill is expected to have its second reading debate
This paper addresses the issues for international recognition of reconstruction and insolvency proceedings affecting international banks raised by the United Kingdom’s decision to leave the European Union, and considers what the United Kingdom and the European Union and its member states could do to address the potential loss of recognition and cooperation, as well as possible wider international initiatives. The relation of this issue to the World Trade Organization’s General Agreement on Trade in Services is also considered.
FINANCE YEAR REVIEW 2017
The biggest news for the loan market in 2017 was the announcement by Andrew Bailey of the FCA that LIBOR may cease to exist beyond 2021. In this briefing, we discuss this and other key legal developments in banking from 2017, and also highlight a few issues to look out for in 2018 and beyond.
1. Key Banking Developments in 2017
2 FEBRUARY 2018
London
Contents
1. Key Banking Developments in 2017
1
The potential discontinuation of LIBOR
- Brexit ripped up the rules on automatic cross-border recognition of formal insolvency proceedings and restructuring tools between the UK and the EU.
- Recognition will now depend on a patchwork of domestic legislation, private international law and treaties and may lead to different outcomes depending on the jurisdiction.
- Cross-border recognition is still achievable but involves careful navigation and a more tailored approach in individual cases to selection of the most effective process and its route to recognition.
Legal landscape