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)

As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. References to exit day in many Brexit SIs are to be read as reference to IP completion day (Implementation Period completion day, defined in clause 39 as 31 December 2020 at 11.00 pm) (unless that provision is expressly disapplied by the SI in question). For further details, see News Analysis: Brexit—impact of the Withdrawal Agreement and European Union (Withdrawal Agreement) Act 2020 for R&I lawyers and Brexit Bulletin—key updates, research tips and resources.

For cross-border insolvency, the Insolvency (Amendment) (EU Exit) Regulations 2019, SI 2019/146 have an impact. For further details, see Practice Note: Brexit—impact on Recast Regulation on Insolvency.

Foreign creditors

There is no bar on a foreign creditor proving in an administration, liquidation or bankruptcy proceeding in England. Similarly, on their discharge from bankruptcy, an English debtor is released, so far as the English court is concerned, from their liability to foreign creditors (Swiss Bank Corporation v Boehmische Industrial Bank).

Neither the Insolvency Act 1986 (IA 1986) nor IR 2016, SI 2016/1024 provide any special rules for