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.
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:
The ACT Borrower's Guide to the LMA's Investment Grade Agreements
Produced by
The ACT Borrower's Guide to the LMA's Investment Grade Agreements
produced by Slaughter and May 5th Edition 1 September 2017
This guide has been produced for the ACT by Slaughter and May to provide assistance to corporate treasurers reviewing draft facility agreements based on the LMA documentation for investment grade borrowers.
/ The ACT Borrower's Guide
The ACT Borrower's Guide /
Introduction1
UK lawyers and restructuring professionals have been highlighting their concerns for British business and Financial Markets if the Government is unable to negotiate a bespoke treaty between the UK and the EU to preserve the mutual and reciprocal recognition provisions written into the Recast EU Insolvency Regulation (Recast EIR) and the Recast Brussels Regulation (the Judgements Regulation) after Brexit in 2019.
In a recent judgment, the Court of Justice of the European Union (CJEU) confirmed the extent to which an English law governed contract can be subject to the transaction avoidance provisions of the insolvency law of other another member state if one of the counterparties enters into insolvency in that member state (eg Italy): Vinyls Italia SpA v Mediterranea di Navigazione SpA C-54/16 (8 June 2017).
1. Introduction
The new Regulation follows on the path of Regulation No. 1346/2000, representing the last step of a process which has been started years ago. European Union authorities resorted also to other means in this direction: aside to the Regulation, a Recommendation has been issued in 2014, inviting Member States to adopt internal procedures more favourable to restructuring (rather than liquidating) distressed businesses.
The Paris office of Hogan Lovells is pleased to provide this English language edition of our monthly e-newsletter, which offers a legal and regulatory update covering France and Europe for June 2017.
Please note that French legal concepts are translated into English for information only and not as legal advice. The concepts expressed in English may not exactly reflect or correspond to similar concepts existing under the laws of the jurisdictions of the readers.
If you would like to consult this newsletter from past months, please click here.
On 13 July, the Insolvency Service published its annual review of personal insolvency statistics for England & Wales for the 2016 calendar year. That annual review can be accessed here. This blog discusses some of the key findings contained within that report.
European Union
Regulation 2015/848 of the European Parliament and of the Council of 20 May 2015
With commercial activities increasingly having an impact across borders in the European market, it has become increasingly necessary to introduce supranational legislation to regulate those activities. In particular, there is a need to make cross-border insolvency proceedings convenient, consistent, effective and efficient across Europe.