The Never-Ending Challenge of Defining COMI (This Time Due to Groups of Companies)

10 Pages Posted: 9 Jul 2019

See all articles by Veronika Střížová

Veronika Střížová

Charles University in Prague - Faculty of Law

Date Written: June 27, 2019

Abstract

Two years after the Recast European Insolvency Regulation (EIR) came into effect and just weeks after the Second Chance Directive was adopted by the European Council, I conclude that regulating cross-border insolvency legislation at the EU-level is an ungratifying task. Not only is European insolvency law one of the most trending and ever-changing fields of law nowadays, but it is also constantly challenged by the human creativity and evolution of business strategies. Just within the past two decades, EU cross-border insolvency law has, (i) witnessed the introduction of COMI (Centre of Main Interests) as the unique connecting factor determining both jurisdiction and governing law and (ii) gone through a major revision, taking into account EU case law and resulting in an adjustment of the definition of COMI. (iii), it substantially shifted the course of resolving insolvencies from mandatory liquidation to the preferred reorganizations (maintaining the debtor’s going concern value) and finally (iv), included groups of companies under the scope of the EIR. This article aims to analyze the latter - the long-anticipated inclusion of groups with emphasis on the current definition of COMI, as well as whether or not this works well together with the concept of group insolvencies.

Keywords: European Insolvency Regulation, COMI, EIR Recast, corporate restructuring, insolvent groups of companies

Suggested Citation

Střížová, Veronika, The Never-Ending Challenge of Defining COMI (This Time Due to Groups of Companies) (June 27, 2019). Charles University in Prague Faculty of Law Research Paper No. 2019/II/6 . Available at SSRN: https://ssrn.com/abstract=3415584 or http://dx.doi.org/10.2139/ssrn.3415584

Veronika Střížová (Contact Author)

Charles University in Prague - Faculty of Law ( email )

Nam. Curieovych 7
Praha, 116 40
Czech Republic

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