Group insolvencies under the EIR recast

With the new Chapter V on group insolvencies, the EIR recast has finally filled an often moaned about gap in the EIR. But the new rules have been deliberately confined to the procedural level – they do not provide for any substantive consolidation. This is a sensible approach, because substantive consolidation would not only frustrate the legitimate expectations of creditors, but would be tantamount to completely abandoning the fundamental cornerstone principles of separate legal entity and limited liability at the very moment when they are most important: insolvency.