Newsflash 27-06-2017

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 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.

Please feel free to contact us for further information.

Mathieu Laurent Avocat à la Cour Partner Luther S.A. Luxembourg Phone +352 27 484 662 mathieu.laurent@luther-lawfirm.com

Maurice Goetschy Avocat à la Cour Senior Associate Luther S.A. Luxembourg Phone +352 27 484 676 maurice.goetschy@luther-lawfirm.com

Anne-Laure Wach Avocat aux Barreaux de Paris et de Luxembourg (Liste IV) Associate Luther S.A. Luxembourg Phone +352 27484 657 anne-laure.wach@luther-lawfirm.lu