A New Framework for Business Restructuring in Europe: The EU Commission’s Proposals for a Reform of the European Insolvency Regulation and Beyond
28 Pages Posted: 10 Mar 2013 Last revised: 26 Mar 2013
Date Written: March 8, 2013
This paper critically reviews the EU Commission’s proposals for a reform of the European Insolvency Regulation (EIR). The focus of the paper is on the Regulation’s use as a tool for business restructuring in Europe. The paper argues that the Commission’s proposals are not based on sound regulatory objectives. Contrary to the Commission’s opinion, preserving businesses is not an end in itself. Further, the Commission is too cautious regarding the harmonisation of substantive insolvency laws of the Member States. The scope of the EIR should be restricted to (fully) collective proceedings. The ‘Centre of Main Interests’ concept should be substituted by the registered office of a company. Universalism remains on the reform agenda in the long run. Finally, procedural consolidation is more efficient than procedural coordination in a group setting.
Keywords: European Insolvency Regulation, Business Restructuring, Harmonisation of Insolvency Laws, Scope of the European Insolvency Regulation, Forum Shopping, Centre of Main Interests, Multiplicity of Proceedings, Coordination of Proceedings, Corporate Groups
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