Inbound proceedings—foreign insolvency practitioner seeking recognition in the UK

The following Restructuring & Insolvency practice note provides comprehensive and up to date legal information covering:

  • Inbound proceedings—foreign insolvency practitioner seeking recognition in the UK
  • Impact of Brexit
  • Saving provisions
  • Alternatives to using the EU Recast Regulation on Insolvency
  • IPs from EU Member States and non-EU Member States
  • Example: inbound recognition of French insolvency proceedings
  • Practical issues

Inbound proceedings—foreign insolvency practitioner seeking recognition in the UK

Impact of Brexit

As of exit day (31 January 2020) the UK is no longer an EU Member State. In accordance with the Withdrawal Agreement, the UK entered an implementation period, during which it continued to be subject to EU law. The implementation period has now ended and the Insolvency (Amendment) (EU Exit) Regulations 2019, SI 2019/146 (Brexit SI 2019/146) amend the Recast Regulation on Insolvency from 11pm on 31 December 2020 (IP completion day) to remove the main operative parts on automatic recognition.

The underlying rationale for Brexit SI 2019/146 is that departure from the EU should not restrict access to the UK courts (ie certain jurisdictional provisions are retained), but that the unilateral retention by the UK of the vast bulk of the remainder of the EU Recast Regulation on Insolvency is not appropriate as it is founded on reciprocity (ie its prospective incorporation into UK law by section 3 of the European Union (Withdrawal) Act 2018 (EU(W)A 2018) is reversed).

Inbound proceedings (ie foreign IPs seeking recognition in the UK): post-Brexit, whether there is any change in practice depends on whether the application is by:

  1. foreign IPs from EU Member States—they can no longer rely on the EU Recast Regulation on Insolvency to give automatic recognition unless main proceedings were commenced before IP completion day.

Popular documents