An Introduction to the Judicial Cooperation in Economic Recovery (JCOERE) Project

Abstract

JCOERE will focus on the strengthened co-operation obligations imposed on the judiciary in the Recast Regulation but will confine its enquiry to preventive restructuring processes. In addition to exploring challenges that procedural rules might present to co-operation, this project will focus on specific substantive problems that will likely become more acute in the restructuring context, such as the commencement of secondary proceedings to protect a creditor’s interests in the face of the ‘cram-down’ provisions as envisaged by the Directive. The question of whether it is reasonable for a court in the second state to decline jurisdiction becomes more immediate in such circumstances. Radical restructuring processes may make co-operation more difficult which may, in turn, inhibit restructuring in the EU.

With the introduction of more sweeping restructuring procedures throughout the EU under the proposed Directive, situations like SAIC are likely to become more common. The JCOERE project therefore addresses the implementation of cooperation obligations imposed on EU domestic courts by the Recast EIR in anticipation of the introduction of new preventive restructuring procedures.

Keywords: judicial cooperation; economic recovery; corporate restructuring

JEL Classification: G3