Brexit’s implications for restructuring and insolvency

Brexit’s implications for restructuring and insolvency

If the UK’s reputation as a centre of excellence for restructuring and insolvency (R&I) work is to be maintained, there needs to be sufficient clarity on what the legal consequences of Brexit will be, the Bar Council has concluded in a report. The Council believes that any post-Brexit arrangement should ensure the continuing application of the EUIR, the EU Regulation on Insolvency Proceedings. However, if no agreement is possible it will be will be crucial to ensure clear transitional provisions for UK insolvencies which commenced before Brexit but will only conclude post-Brexit.

The Council has warned the government that there is increasing international competition in the R&I field, particularly from Singapore and the Netherlands.

It has urged the government to seek a successor regime which keeps the advantages of the EU scheme.

The Council also says it is generally accepted that it is essential to have a clear and consistent basis for the allocation of jurisdiction in insolvency proceedings, and the recognition and enforcement of orders made in those proceedings.

For further reading, see: The Brexit Papers, The Bar Council Brexit Working Group.

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About the author:

Stephen qualified as a solicitor in 2005 and joined the Restructuring and Insolvency team at Lexis®PSL in September 2014 from Shoosmiths LLP, where he was a senior associate in the restructuring and insolvency team.

Primarily focused on contentious and advisory corporate and personal insolvency work, Stephen’s experience includes acting for office-holders on a wide range of issues, including appointments, investigations and the recovery and realisation of assets (including antecedent transaction claims), and for creditors in respect of the impact on them of the insolvency of debtors and counterparties.