Should the scope of the EC Insolvency Regulation be extended to cover debtor-in-possession proceedings?

A review of the EC Regulation on Insolvency Proceedings 2000 (the “EIR”) is set to take place in 2012, 10 years after the EIR initially came into force. One of the proposed changes is to broaden the EIR’s scope to include insolvency proceedings where an insolvent debtor remains in possession (“DIP Proceedings”). At present, the EIR only applies to insolvency proceedings which involve “partial or total divestment of the debtor and the appointment of a liquidator”; DIP Proceedings are therefore excluded.