BLOG POST BY OUR PATRON DEL CANTO CHAMBERS
Continuing with the saga of “what will happen with”, today we will analyse the issues regarding insolvency proceedings established in the European Commission updated “Notice to Stakeholders on the Withdrawal of the United Kindgom and EU Rules in the Field of Civil Justice and Private International Law” (the “Notice”).
Regulation (EU) 2015/848 will apply when main proceedings opened before the end of the transition period. After that, the UK will not be able to open insolvency proceedings on the basis of Regulation (EU) 2015/848. The EU Member States will treat UK as a third country and insolvency proceedings initiated will not be recognised under Regulation (EU) 2015/848. Also, this will affect the automatic recognition of insolvency decisions issued in UK across EU Member States.
We need to bear in mind the importance of certainty on insolvency proceedings, especially for the finance sector. An expedite procedure may turn into a time-consuming and complex litigation one if not agreement is reached before the 31 December 2020.
Find the Notice on the following link: https://n9.cl/ars4