A focal point of the reform of the European Insolvency Regulation (EIR) is the revision of the provisions regarding secondary insolvency proceedings. As before, these proceedings pursue two objectives, i.e. protecting creditors in this country and supporting the main insolvency proceedings. However, the body issuing the reform regulation took account of practical experiences when dealing with the European Insolvency Regulation (2000/1346) and the criticism made of these proceedings in many cases. Above all, the secondary insolvency proceedings were pilloried on the grounds that they impede restructuring, since secondary insolvency proceedings must necessarily be liquidation proceedings. The European body issuing the reform regulation is not only abolishing this restriction but is also engaging at various points in order to solve the problems that arise on commencement of secondary insolvency proceedings for the restructuring of an enterprise as a whole. Click here for more.
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