- Recognition of EEA credit institution insolvency proceedings post-Brexit (Re Greensill Bank AG)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Case details
Restructuring & Insolvency analysis: The High Court granted an application by the insolvency administrator of Greensill Bank AG for recognition in the UK of German insolvency proceedings under the Cross-Border Insolvency Regulations 2006 (CBIR 2006). The court confirmed that, following Brexit, institutions which would formally have been excluded as ‘EEA credit institutions’ are now entitled to apply for recognition of foreign insolvency proceedings under the CBIR 2006. While CBIR 2006, art 1(2)(h) still purports to exclude EEA credit institutions, it does so by reference to the definition contained in the Credit Institutions (Reorganisation and Winding Up) Regulations 2004 (the 2004 Regulations). Since there is no longer any applicable definition of ‘EEA credit institution’ in the 2004 Regulations (save for institutions which fall within the transitional provisions), EEA credit institutions are no longer excluded from CBIR 2006. The court also made an order entrusting to the insolvency practitioner the administration or realisation of all Greensill Bank AG’s assets located in Great Britain, subject to further order of the court. Written by Chantelle Staynings, barrister at Erskine Chambers.
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