Relief applications under article 21 of the Cross-Border Insolvency Regulations 2006
Produced in partnership with Lexa Hilliard QC of Wilberforce Chambers and Philip Hinks of 3 Verulam Buildings

The following Restructuring & Insolvency practice note produced in partnership with Lexa Hilliard QC of Wilberforce Chambers and Philip Hinks of 3 Verulam Buildings provides comprehensive and up to date legal information covering:

  • Relief applications under article 21 of the Cross-Border Insolvency Regulations 2006
  • Automatic relief following recognition under CBIR 2006, SI 2006/1030 (art 20)
  • Specific relief following recognition under CBIR 2006, SI 2006/1030, Sch 1 (art 21)
  • Procedure for applications under the CBIR 2006, SI 2006/1030 (art 21)

Relief applications under article 21 of the Cross-Border Insolvency Regulations 2006

Automatic relief following recognition under CBIR 2006, SI 2006/1030 (art 20)

Certain relief follows automatically from the English court’s recognition of foreign proceedings that are foreign main proceedings. In particular, article 20(1) of Schedule 1 to the Cross-Border Insolvency Regulations 2006, SI 2006/1030 (CBIR 2006) says:

  1. commencement or continuation of individual actions or individual proceedings concerning the debtor’s assets, rights, obligations or liabilities is stayed

  2. execution against the debtor’s assets is stayed, and

  3. the right to transfer, encumber or otherwise dispose of any assets of the debtor is suspended

The stay/suspension imposed by CBIR 2006, SI 2006/1030, Sch 1 (art 20(1)) is, however, subject to the same exceptions/limitations as would be the case in a wholly domestic (UK) context.

Re OGX Petróleo e Gás SA Nordic Trustee A.S.A. is a reminder that full and frank disclosure must be given by the applicant; Snowden J said that foreign representatives and their advisers must ensure that the valuable process for recognition under the Model Law and the CBIR 2006, SI 2006/1030 is not misused. When seeking recognition, full and frank disclosure must be made to the court in relation to the consequences that recognition of the foreign proceeding may have upon third parties who are not before the court. In particular, the court should be told of any points

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