Q&As

Is there any benefit in requiring a borrower to add a representation as to its centre of main interests (COMI) in loan agreements post IP completion day (ie post Brexit)?

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Published on LexisPSL on 30/09/2020

The following Restructuring & Insolvency Q&A provides comprehensive and up to date legal information covering:

  • Is there any benefit in requiring a borrower to add a representation as to its centre of main interests (COMI) in loan agreements post IP completion day (ie post Brexit)?
  • Centre of main interests (COMI)

Centre of main interests (COMI)

COMI is an important concept under the EU Recast Regulation on Insolvency Proceedings (Regulation (EU) 2015/848) (Recast Regulation on Insolvency) as it dictates where the main insolvency proceedings against a company should be opened and prevents concurrent main proceedings being opened elsewhere. Following the end of the implementation period, the key parts relating to automatic recognition fall away for the UK.

The Recast Regulation on Insolvency proceedings is being ‘on-shored’ under the Insolvency (Amendment) (EU Exit) Regulations 201, SI 2019/146. For further information, see Practice Note: Brexit—impact on Recast Regulation on Insolvency. This explains that the concept of COMI is being retained under the on-shoring regulations in order to ensure there is no narrowing of the jurisdiction of the English

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