Brexit materials for Restructuring & Insolvency practitioners

Brexit materials for Restructuring & Insolvency practitioners

This News Analysis highlights the Brexit materials available on Lexis®PSL Restructuring & Insolvency (R&I) (subscription required) and sets out our preparations for implementation period (IP) completion day on 31 December 2020.

During the Brexit IP/transitional period, the key EU regulations effectively remained in place for R&I practitioners, but the situation changes significantly on IP completion day (31 December 2020 at 11.00 pm).

From IP completion day, assuming there is no deal on insolvency matters, the transition period ends, the UK is no longer an EU Member State and various Brexit SIs kick in. Essentially the key operative parts of Regulation (EU) 2015/848 (Recast Regulation on Insolvency) on automatic recognition fall away, as well as Regulation (EU) 1215/2012 (Brussels I (recast)), so while jurisdiction to open certain insolvency proceedings for foreign companies may still exist, their subsequent recognition in the remaining EU Member States will be more problematic.

This News Analysis highlights the main impact on R&I practitioners and provides further deeper reading links to materials available on Lexis®PSL. In addition, the Lexis®PSL R&I team are working to update key existing content including precedents and forms in advance of IP completion day to reflect the impact of Brexit.

All the materials relating to Brexit can be found in our Brexit subtopic which accessible from the drop down topic tree on the Lexis®PSL R&I homepage under ‘Key R&I law developments’.

HOW DOES BREXIT IMPACT R&I?

 
What are the key changes in practice from IP completion day?

From IP completion day, in the event of no deal, the main impact for R&I practitioners is the loss of the main operative parts of the Recast Regulation on Insolvency, EU Regulation 2015/848 relating to automatic recognition (see Practice Note: Brexit—impact on Recast Regulation on Insolvency).

Although the jurisdictional tests are retained, meaning many insolvency/restructuring procedures can still be commenced in England and Wales post IP completion day, their subsequent recognition in EU Member States will be problematic. See Practice Notes: Table showing impact of Brexit on jurisdiction to commence insolvency/restructuring proceedings and obtain recognition in other EU Member States and How EU Member States recognise insolvency proceedings of a third-party state.

The impact on each of the key English I&R processes is addressed in the following Practice Notes:

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About the author:

Anna joined the Restructuring and Insolvency team at Lexis®PSL in August 2013 from Berwin Leighton Paisner where she was a senior associate in the Restructuring Team.

Anna has worked on a number of large scale restructurings primarily in the UK market acting on behalf of lending institutions.

Recent transactions include the restructuring of a UK hotel chain and the administration sale of part of the Connaught group. Anna has also spent time on secondment at The Royal Bank of Scotland and trained at Clifford Chance qualifying in 2007.