The Regulation (EU) 2015/848 of the European Parliament and of the council dated 20 May 2015 on insolvency proceedings (hereinafter the “new Regulation”), which replaces the Regulation (EU) 1346/2000 dated 29 May 2000 became applicable on Monday 26 June 2017.
The new Regulation establishes continuity rules and therefore does not constitute a “revolution”.
The principle aims and new developments of the new Regulation are the following:
- Improve legal security and protection of creditors;
- Extension of the scope of application (in particular, it does now include the situation where a debtor is not fully divested of the control of its assets);
- The new Regulation still does not apply to investment firms and collective investment undertakings;
- The new Regulation includes a definition of the Centre of its Main Interests (“COMI”);
- A court seized of a request to open insolvency proceedings will examine whether it has jurisdiction of its own motion, in order to decrease the risk of forum shopping;
- Introduction of a cooperation mechanism between the insolvency practitioner in the main insolvency proceedings and the insolvency practitioner(s) in the secondary insolvency proceedings;
- Introduction of cooperation and communication mechanisms concerning insolvency proceedings of members of a group of companies.
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