The UK opts in to Europe: working with Johnny Foreigner

Guildhall Insolvency @ the Watershed

Wednesday 12 June 2013

Chris Laughton, Mercer & HoleStefan Ramel Guildhall Chambers

On the menu for today….

•the Reform of Council Regulation (EC) No 1346/2000 on insolvency proceedings

• Some reflections on communication and co-operation in cross-border cases

Timeline of reform

•March – June 2012 = public web-based & Europe-wide consultation on the Regulation;

•June 2012 = Art. 46: EC Commission due to report on the Regulation by June 2012;

•December 2012 = proposed revised Regulation (the Commission was late!);

Timeline of reform (ctd)

•January 2013 = proposal sent to the European Parliament for legislative scrutiny (end eta: Spring 2014);

•7 – 25 February 2013 = very short UK consultation period.

•April 2013 = deadline for UK Opt-in decision. Decision taken on basis of consultation responses and work with stakeholders

The results of the EU consultation are in…

•Regulation functions in a “sound and satisfactory manner”

•Some (actually, quite a bit of) room for improvement

•Focus to be on rescue and recovery, not liquidation

The word from Europe…

“… The new rules will help

viable businesses to survive

and promote a culture of the

"second chance". The revised

rules will increase efficiency,

fairness and transparency of

cross-border insolvency

proceedings…”

Viviane Reding, Commission

Vice-President, 16 May 2013

The word from Parliament…

“… Responses from

stakeholders have

been universally

supportive of the

proposals and of the

UK opting in…”

Jo Swinson, 4 March

2013

and the UK’s decision was…

“… The decision to

opt-in was unanimously

supported by stakeholders

who responded to a call for

evidence during February

2013…”

Jo Swinson, written

ministerial statement, 15

April 2013

Gazing into a crystal ball…

Key suggested changes

include:

•bankruptcy tourism;

•COMI / jurisdiction;

•Insolvency Register;

•Groups

•Secondary proceedings

Working with Johnny Foreigner?

Cooperation and communication (1)

Antal International Limited (in administration) – 2002

[2003] EWHC 1339 (Ch)

Working with Johnny Foreigner again

Cooperation and communication (2)

Alitalia Linee Aeree Italiane S.p.A.

[2011] EWHC 15 (Ch)

Really working with Johnny Foreigner

Cooperation and communication (3)

Alkor-Venilia GmbH (in liquidation)

Germany – main

UK

France

Italy all secondary

Spain

Belgium