Restructuring Frameworks Undergoing Change

Part I: Cross-border recognition of restructuring proceedings – Amendment to the European Insolvency Regulation

How can complex, costly and time-consuming recognition processes or parallel restructuring proceedings in different jurisdictions be avoided?

Whilst the avenue for the EU-wide automatic recognition of restructuring proceedings has now been opened for several jurisdictions by an amendment to the European Insolvency Regulation ((EU) 2015/848) (EIR), the query above remains unanswered as regards restructuring proceedings falling outside the scope of application of the EIR.

Background

Annexes A and B to the EIR list national insolvency proceedings and practitioners to which the latter Regulation, including its recognition mechanism, applies. By the Regulation (EU) 2021/2260, the annexes have been replaced with new ones and are now supplemented with new types of restructuring proceedings and practitioners which eight Member States have introduced in