Table showing impact of Brexit on jurisdiction to commence insolvency/restructuring proceedings and obtain recognition in other EU Member States
Table showing impact of Brexit on jurisdiction to commence insolvency/restructuring proceedings and obtain recognition in other EU Member States

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

  • Table showing impact of Brexit on jurisdiction to commence insolvency/restructuring proceedings and obtain recognition in other EU Member States
  • Key dates
  • After the transition period: no deal covering insolvency
  • Table showing jurisdiction to open various restructuring and insolvency processes after IP completion day
  • Table showing recognition of various restructuring and insolvency processes elsewhere (ie outbound proceedings) after IP completion day

Key dates

31 January 2020—Exit Day and implementation period began under the European Union (Withdrawal Agreement) Act 2020 (EU(WA)A 2020).

31 December 2020 at 11 pm—IP completion day (Implementation Period completion day) (as defined in EU(WA)A 2020, s 39). The implementation period ended on 31 December 2020.

After the transition period: no deal covering insolvency

From IP completion day onwards, given no deal on insolvency matters (the draft trade deal announced on 24 December 2020 did not cover cross border insolvency), the transition period ends, the UK is no longer treated as an EU Member State and various Brexit SIs kick in. Essentially, the key operative parts of the Regulation (EU) 2015/848 (OJ L141/19), Recast Regulation on Insolvency [EU Recast Regulation on Insolvency] on automatic recognition fall away (see Practice Note: Brexit—impact on Recast Regulation on Insolvency), as well as EU Brussels I (recast), so while jurisdiction to open certain insolvency proceedings for foreign companies may still exist, their subsequent recognition in the other remaining EU Member States will be more problematic. However, although we lose (i) the main operative parts of the EU Recast Regulation on Insolvency, the UK and most EU Member States have sophisticated comity rules and (ii) EU Brussels I (recast), the Lugano Convention could apply to the UK in its own right eventually. Additionally, EU Rome I is largely unaffected and continues to

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