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.

BANKING

ECON votes to adopt draft report on proposed BRRD Insolvency Hierarchy Directive

The INSOL International Channel Islands Seminar took place on 13 September 2017 in Guernsey, where tensions rose high as jurisdictions battled it out for the crown of the "go-to" jurisdiction for cross border restructurings.

Situation before Brexit

Currently, a UK court’s decision to open insolvency proceedings, and the subsequent proceedings, are automatically recognised under Articles 16 and 17 of the European Insolvency Regulation.

Recognition of insolvency proceedings

After Brexit, it is most likely that the UK will be treated as a non-Member State (unless the UK reaches any special agreement with the EU).

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

Introduction The number of financial institutions that have announced the relocation of their EU headquarters from the UK to Germany has increased during the last weeks. In the meantime, some of the largest US and Asian institutions have confirmed their plans to expand their operations in Germany, and we expect others to follow soon. How can we assist? This briefing shall provide you with an overview of a number of issues that may be of interest for your decision to expand your operations in Germany.

The CJEU reviews the conflicts that arise in the defence provided under Article 13 Regulation No 1346/2000 when Liquidators of an Italian company attempt to set aside payments claimed to otherwise be permissible under English law.

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.