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A New Approach to Regulating Group Insolvencies: 'Procedural Consolidation' in the Context of National and International Reform Proposals

43 Pages Posted: 2 May 2013  

Horst Eidenmueller

University of Oxford; European Corporate Governance Institute (ECGI)

Tilmann Frobenius

Ludwig Maximilian University of Munich

Date Written: April 30, 2013

Abstract

This paper develops a new approach to regulating group insolvencies: procedural consolidation. Under this approach, multiple proceedings over the assets of group companies are consolidated in one proceeding. However, there is no 'substantive consolidation', i.e., assets and liabilities of the group companies are kept distinct. The paper demonstrates how that approach could be implemented in the European Insolvency Regulation (EIR) and also in the domestic insolvency systems of European Member States such as Germany. The current proposals of the European Commission for a reform of the EIR and of the German Justice Ministry for a reform of the German Insolvency Code ('Insolvenzordnung') are evaluated against this background.

Notes: Downloadable document is in German.

Suggested Citation

Eidenmueller, Horst and Frobenius, Tilmann, A New Approach to Regulating Group Insolvencies: 'Procedural Consolidation' in the Context of National and International Reform Proposals (April 30, 2013). Available at SSRN: https://ssrn.com/abstract=2258874 or http://dx.doi.org/10.2139/ssrn.2258874

Horst G. M. Eidenmueller (Contact Author)

University of Oxford ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

European Corporate Governance Institute (ECGI) ( email )

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

Tilmann Frobenius

Ludwig Maximilian University of Munich ( email )

Geschwister-Scholl-Platz 1
Munich, Bavaria 80539
Germany

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