European Union Regulation on Insolvency Proceedings: An Introductory Analysis (Fourth Edition)
This book, written by two representatives of Leiden Law School, describes the framework of the European Insolvency Regulation (recast) (‘EIR Recast’), in force since June 2017.
- Prof. emeritus Bob Wessels, Ilya Kokorin LLM (Leiden University)
- 18 December 2018
The book reviews its major rules, highlights the differences from the European Insolvency Regulation of 2000, and makes references to the most important and recent cases of the Court of Justice of the European Union. The book has been written by the authors as an essential guide to judges, practitioners, scholars and students who are confronted with this domain of law, as well as anyone dealing with Europe-related cross-border cases. It serves as a concise and comprehensive introduction to the EIR Recast.
The first major legal instrument dealing with cross-border insolvencies in the European Union (EU) has been the European Insolvency Regulation (EIR 2000). It was adopted in 2000 and entered into force on 31 May 2002. Directly applicable in all Member States (except Denmark), it contained uniform rules on international jurisdiction, recognition of insolvency judgments, applicable law in insolvency matters and cooperation in insolvency proceedings running parallel in several Member States.
Despite initial doubts, the EIR 2000 turned out to be an effective tool in dealing with cross-border insolvencies within the EU. The Court of Justice of the EU (CJEU) has played an active role in ensuring its efficiency by clarifying many of its concepts, including ‘COMI’, ‘establishment’ and ‘related action’. Nevertheless, as more than ten years had passed since the EIR 2000 took effect, it became clear that further improvements were necessary to better suit current business and technological trends. This led to the adoption of a new European Insolvency Regulation (EIR Recast), which has been in effect since 26 June 2017.
Although the EIR Recast does not change the fundamentals of the EIR 2000 (i.e. COMI, lex concursus, main and secondary proceedings), it elaborates some of the existing rules and introduces new ones. The EIR Recast has a wider scope and extends to restructuring and insolvency proceedings which promote the rescue of economically viable but distressed businesses and which give a second chance to entrepreneurs. Another crucial innovation of the EIR Recast includes the so called ‘group coordination proceedings’.
In this book, we succinctly describe and explain in 263 pages all major concepts and provisions of the EIR Recast in a systematic and approachable way. This is exemplified by the chapters in the book, which cover such topics as:
- EIR Recast background
- Scope of EIR Recast
- International insolvency jurisdiction
- Law applicable to insolvency proceedings and their effects
- Recognition and enforcement of insolvency and related judgments
- Powers of insolvency practitioner
- Return and imputation
- Public policy exception
- Insolvency registers
- Lodgment of claims
- Secondary insolvency proceedings
- Communication and cooperation in insolvency
- Insolvency proceedings of members of a group of companies
- Other issues (including data protection)
- EIR Recast and Brexit
The American Bankruptcy Institute (ABI) has since the first edition of this book in 2003 recognized that it is of enormous importance for businesses, banks and insolvency practitioners, involved in international dealings, to be aware of the key rules and practicalities of the European insolvency regime. This was, in short, the background for the first edition of this book. It has remained unchanged in the preparation of the present fourth edition.
The book can be found in the ABI Store.