Guidance

Cross-border Insolvencies: Recognition and Enforcement in EU Member States

Guidance for insolvency officeholders regarding the applicable frameworks in different EU member states

Applies to England and Wales

Documents

Details

This guide seeks to provide insolvency officeholders with some basic information regarding the applicable frameworks in the different EU member states, as a starting point towards seeking recognition for UK insolvency proceedings and dealing with assets in the EU.

Information provided is primarily regarding seven of the UK’s most significant EU trading partners by total volume of trade, in the hope that this will prove useful. This includes a summary of the arrangements for recognition of foreign insolvency proceedings (where “foreign” should be read to mean non-EU proceedings not covered by the EU Insolvency Regulation, otherwise known as “third country” insolvency proceedings; and “insolvency proceedings” should be read as including any relevant insolvency process but excluding reorganisation proceedings for which additional considerations apply), and further information that may assist those interested in seeking recognition of UK insolvency proceedings in that jurisdiction.

Some additional information has also been provided on the remaining EU states. In those cases this is limited to a very short description of the arrangements for the recognition of foreign insolvency proceedings.

The entries do not cover all the nuance of recognition: individual assets may be subject to particular treatment under local law, and it would not be possible to cover such issues in any useful way in this short guide; similarly, local application of the law may vary even where a similar approach has been adopted in several jurisdictions. In some cases the position of UK insolvency proceedings in particular is unclear and has not been tested at the time of publication. In addition, for the purposes of this guide, we have not distinguished between in-court and out-of-court UK insolvency appointments. Out-of-court appointments may not be recognised to the same extent as in-court appointments under the domestic laws of each EU member state.

Published 24 March 2021