Starting 26.06.2017 the new rules facilitating cross-border insolvency proceedings entered into force. These new rules are provided by Regulation (EU) 2015/848 of the European Parliament and of the Council.
The new rules will ensure an effective and efficient cross-border debt recovery. They focus on resolving the conflicts of jurisdiction and laws in cross-border insolvency proceedings so that will make it easier for businesses to get restructured and for creditors to get their money back.
The key features of the new rules regarding the cross-border insolvency
The main issues solved by this Regulation are:
- group insolvency proceedings;
- avoidance of the secondary proceedings;
- avoidance of the bankruptcy tourism;
- an EU-wide interconnection of electronic national insolvency registers.
This update of the regulation of the cross-border insolvency proceedings was necessary because certain modern and efficient types of national restructuring proceedings were not covered by the old set of rules.
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