INSOL Europe/Lexis®PSL launch Joint Project on ‘How EU Member States recognise insolvency and restructuring proceedings of a third country’

INSOL Europe/Lexis®PSL launch Joint Project on ‘How EU Member States recognise insolvency and restructuring proceedings of a third country’

We are pleased to announce LexisPSL R&I’s latest collaboration with INSOL Europe. INSOL Europe's national correspondents have provided answers to key questions on recognition post Brexit by EU Member States of insolvency or restructuring proceedings commenced in a third country, such as the UK (post Brexit), the US, Japan, Australia or Canada.

A consolidated table of the replies from INSOL Europe also incorporating information from Lexology Getting The Deal Through appears here: INSOL Europe/Lexis®PSL Joint Project on ‘How EU Member States recognise insolvency and restructuring proceedings of a third country’: consolidated table.

The questions

The first question considers whether the UNCITRAL Model law on Insolvency has been adopted in that particular country and, if not, whether there are any plans to consider its adoption. Application of the UNCITRAL Model law by a country will greatly improve visibility on the process and likelihood of the third country gaining recognition of its relevant insolvency/restructuring proceeding.

The second question considers how each country will recognise insolvency/restructuring proceedings commenced in a third country (ie a country which is not an EU Member State, such as the UK (post-Brexit), the US, Japan, Australia or Canada), which may be through the Lugano Convention, Hague Convention, Rome I or other private international law rules.

The third question looks at how this approach would apply specifically to the example of seeking recognition of proceedings commenced in a third country (the UK) in respect of an English Part 26 scheme of arrangement or Part 26A restructuring plan.

The final column gives links to any further reading and author accreditations in each case.

This table only provides a guide to the general principles applicable and you should always contact local lawyers in the relevant jurisdiction to check the current measures in force and the impact of any particular circumstances or nuances on your case. Further countries and details will be provided as they become available.

Accreditations

We would especially like to thank the following for their help with the Joint Project: Chris Laughton, Alice Van Der Schee, Myriam Mailly, the INSOL Europe Country Coordinators, Caroline Taylor and Paul Newson at INSOL Europe and Kathy Stones and Neeta Chenani at LexisPSL R&I.

The articles accredited to GTDT were reproduced with permission from Law Business Research Ltd. First published in Lexology Getting The Deal Through—Restructuring & Insolvency 2021, November 2020. For further information please contact adam.sargent@lbresearch.com.

The articles accredited to INSOL Europe are reproduced with permission from INSOL Europe and are available from https://www.insol-europe.org/technical-content/recognition-in-third-states.

The list of the INSOL Europe country coordinators is available at: https://www.insol-europe.org/country-coordinators.

 

 

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About the author:
Kathy specialises in restructuring and cross-border insolvency. She qualified as a solicitor in 1995 and has since worked for Weil Gotshal & Manges and Freshfields. Kathy has worked on some of the largest restructuring cases in the last decade, including Worldcom, Parmalat, Enron and Eurotunnel.