Insolvency Blog - European Insolvency

The European Court of Justice (Case Number C-444/07) has held that the German court was not entitled to make an attachment order against the German assets of MG Probud Gdynia sp. z o.o. ('MG Probud'), which was subject to Polish winding up proceedings. Polish law provides for a stay of enforcement proceedings against the assets of a company that goes into liquidation. Shortly after the Polish proceedings were opened, the local court in Saarbrücken, Germany had ordered an attachment of various bank accounts and claims in Germany on the application of the German Customs Office The Polish...

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Chris Laughton, a restructuring and insolvency partner at Mercer & Hole in London, has succeeded to the deputy presidency of INSOL Europe, the European organisation of professionals who specialise in insolvency, bankruptcy and business reconstruction & recovery. Speaking from Stockholm at the conclusion of INSOL Europe's 2009 annual congress he said "I am delighted to take up this role at a time when restructuring and insolvency professionals are busy across Europe. Experience of cross-border advisory and formal insolvency work - and having local contacts throughout the region - is the key to effective...

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Answers to blog readers' enquiries about real life situations may be helpful to others with similar difficulties - here are some on cross-border issues. Q: I am a German GP and currently working in UK. I have a bankruptcy order from 7 months ago. Can I go back to Germany to work there before my discharge of bankruptcy ? A: Yes, but it would be sensible to make sure the Official Receiver knows when you are going and how to contact you in Germany, to ensure there is no delay in obtaining your discharge. Q: I made an advance payment...

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As the major (English) trading creditor of the London branch of a troubled bank registered and with its principal operations and headquarters in Switzerland but with other branches in a variety of largely offshore jurisdictions, what insolvency process would you seek to have employed in which jurisdiction in order best to protect your interests? The majority of the bank's assets are in England and you fear that without proper control being exercised they might be dissipated in the impending collapse....

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More food for thought in a post by John Armour on the Credit Slips blog. I agree with the conclusion that: "we're going to see a number of the highly leveraged buyouts that run into difficulty winding up in formal bankruptcy proceedings, after a workout has been attempted and failed". And this may well lead to attempts to reform some European bankruptcy codes. It will also promote and no doubt extend the migration concept (previously discussed here). Moving a COMI (centre of main interests) to a jurisdiction where the insolvency regime is more suited to concluding a successful restructuring not...

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The register will be launched in September 2007 at the Regional Court in Brno and the Supreme Court in Olomouc before testing is rolled out to other courts. It will contain on-line details of bankruptcy administrators, debtors and their electronic files, according to epractice.eu. ...

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Winning the Eurovision Song Contest was only one of Serbia’s European achievements last weekend. They also hosted INSOL Europe’s 3rd Accessing Countries Committee conference, as reported by Economy, the Serbian business news website. An abridged version of a paper on Serbia’s bankruptcy law developments by Jelena Marjanovic, winner of the 2006 Richard Turton Award, is available here (as published in Eurofenix, INSOL Europe’s quarterly journal). Serbia has the advantage of having developed its bankruptcy law since 2000, incorporating many of the best bits of other insolvency regimes around the world. Making good use of...

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Does the appointment of a schwacher vorläufiger Insolvenzverwalter (a “weak” preliminary administrator) under German law normally entail the partial or total divestment of the debtor as set out in Article 1(1) of the European Insolvency Regulation? I had understood from various German sources that it did not, and that therefore such an appointment would not normally constitute insolvency proceedings under the Regulation. Moreover, this is not an uncommon English view. In Hans Brochier Ltd vs Exner ([2006] EWHC 2594 (Ch)), Warren J found, although the point was not argued, that "It is common ground [between the parties, one...

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For a current guide to insolvency procedures in nine major European jurisdictions, try Clifford Chance's European Insolvency Procedures (2007 Edition). A reasonably heavyweight (68 pages) briefing note, it is a useful and digestible reference guide (in English) to procedures in: England & Wales France Luxembourg Belgium Germany Spain The Netherlands Poland The note includes an introduction on the European Insolvency Regulation and a brief comparative analysis of insolvency and restructuring trends in Europe. ...

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Eurofenix is INSOL Europe's quarterly journal. Like insolvencyblog.com(!), it is essential reading for all insolvency practitioners, distressed investors and other relevant professionals who are interested in European insolvency and restructuring. I declare an interest as Eurofenix's editor. If you like it, use this form to become a subscriber and receive your personal copy each quarter. ...

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