Recast Regulation on Insolvency: materials available on LexisPSL R&I

Recast Regulation on Insolvency: materials available on LexisPSL R&I

From 26 June 2017, the bulk of the provisions of the Recast Regulation on Insolvency 848/2015 come into force and replace the EC Regulation on Insolvency 1346/2000. We look at the materials available on LexisPSL R&I for R&I lawyers.

Effective date

In one of the biggest changes for cross-border R&I lawyers in the last 17 years, substantial reforms are made to the Regulation (EC) 1346/2000 on insolvency proceedings (the EC Regulation on Insolvency) under the Regulation (EU) 848/2015 of the European Parliament and of the Council of 20 May 2015 on insolvency proceedings (recast) (the Recast Regulation).

Although the Recast Regulation entered force on 26 June 2015, the majority of the provisions are only effective from 26 June 2017 onwards—this was to allow Member States to familiarise themselves with the new provisions (a Corrigendum was published by the EC on 21 December 2016 clarifying that the Recast Regulation only applies to insolvency proceedings opened from 26 June 2017; the previous text said 'proceedings opened after 26 June 2017'). The EC Regulation on Insolvency continues to apply to proceedings opened before 26 June 2017 (Recast Regulation, art 84(2)).

Summary of the main changes

Some of the main changes include:

  • wider scope to include rescue and pre-insolvency proceedings (proceedings for the purpose of rescue, adjustment of debt and reorganisation, including debtor-in-possession proceedings) as well as liquidation
  • a new definition of centre of main interests (COMI) and a positive obligation on courts to examine COMI and determine whether proceedings are main or just territorial
  • an express right for debtor/creditors to challenge main proceedings on jurisdictional grounds
  • wider jurisdiction for related civil or commercial claims to be brought in the defendant's domicile rather than where insolvency proceedings are located
  • a new definition of establishment
  • the introduction of synthetic secondaries
  • creating national electronic searchable databases and linking them up to create a central European database
  • an obligation on insolvency practitioners (IPs) and courts who are involved with main and secondary proceedings (and also group companies) to communicate and co-operate
  • the introduction of a new concept called 'group co-ordination proceedings'. Any IP appointed over a group company may request the opening of group co-ordination proceedings by filing a request containing certain information at any court having jurisdiction over the insolvency proce

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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.