Foreign creditors—the position under the Insolvency (England and Wales) Rules 2016
Produced in partnership with South Square & BDO
Foreign creditors—the position under the Insolvency (England and Wales) Rules 2016

The following Restructuring & Insolvency guidance note Produced in partnership with South Square & BDO provides comprehensive and up to date legal information covering:

  • Foreign creditors—the position under the Insolvency (England and Wales) Rules 2016
  • Brexit impact—cross-border insolvency (Insolvency (Amendment) (EU Exit) Regulations 2019, SI 2019/146)
  • Foreign creditors
  • Foreign currency debts
  • The EC Regulation on Insolvency Proceedings/the Recast Regulation
  • Effect of the Cross Border Insolvency Regulations (CBIR)

Brexit impact—cross-border insolvency (Insolvency (Amendment) (EU Exit) Regulations 2019, SI 2019/146)

This Practice Note is impacted by the decision of the UK on 23 June 2016 to leave the European Union.

For cross-border insolvency, the Insolvency (Amendment) (EU Exit) Regulations 2019, SI 2019/146 were introduced and made on 30 January 2019 to address the deficiencies arising as a result of the withdrawal of the UK from the EU, by amending legislation, including EU-derived domestic legislation and directly effective EU legislation/rights that UK plans to retain in domestic law after exit. Key examples include:Insolvency (Amendment) (EU Exit) Regulations 2019, SI 2019/146

  1. prospective amendments to the Regulation (EU) 2015/848 of the European Parliament and of the Council of 20 May 2015 on insolvency proceedings (the Recast Regulation on Insolvency), in anticipation of it being retained in domestic law after exit day

  2. associated and consequential amendments to related primary legislation, such as the Insolvency Act 1986, Employment Rights Act 1996 and Pension Schemes Act 1993

  3. various consequential amendments to relevant delegated legislation, such as The Insolvency (England and Wales) Rules 2016, SI 2016/1024 (IR 2016) and The Cross Border Insolvency Regulations 2006, SI 2006/1030 (CBIR)

This legislation is partly in force from 31 January 2019 (some Northern Ireland provisions) and fully in force on exit day (as defined in section 20(1)–(5) of the European Union (Withdrawal) Act 2018 (EU(W)A 2018). For further details, see: LNB News 04/02/2019 73.European Union (Withdrawal) Act 2018, ss 20(1)–(5)

The main aim is to address deficiencies in the relevant retained EU law, in particular the Recast Regulation on Insolvency, which depends on reciprocity that is not guaranteed in