On 20 June 2012, INSOL Europe launched its proposal for revision of the European Insolvency Regulation by officially submitting it to the Commission of the European Union in Brussels. Speeches were given by INSOL Europe's Secretary-General Marc Udink, Honorary President Neil Cooper and the chairman of the committee which drafted the proposal, Robert van Galen.

The European Insolvency Regulation provides for the pan-European effect of liquidation and reorganisation proceedings opened in a member state of the European Union. By virtue of this important regulation trustees appointed in a member state can exercise their powers in other member states and judgments relating to insolvency proceedings are given effect to in other member states. The regulation furthermore inter alia contains rules on coordination between multiple proceedings and the law applicable to insolvency issues such as dismissal of employees.

After long negotiations the regulation entered into force on 31 May 2002. However it was provided that in 2012 the European Commission should present a report on the application of the European Insolvency Regulation and that it should be accompanied if need be by a proposal for adaptation of the regulation.

The proposal presented by INSOL Europe provides for such adaptation of the European Insolvency Regulation.

The most important topic dealt with in the proposal is the insolvency of groups of companies. The present regulation deals only with single companies and not with groups. It is widely felt that there is an urgent need for a structure within which contingent groups of companies can be restructured in one single move and in which sales of assets of group companies are coordinated. Such rules will improve the possibility to reorganise European corporations and strengthen the European market.

Other sections of the proposal concern the recognition of insolvency proceedings opened outside the European Union, rules on jurisdiction, security interests, expenses of the insolvency proceedings and a number of technical issues.

The drafting committee was composed of practitioners from  several jurisdictions: Robert van Galen (chairman) (NautaDutilh, the Netherlands), Marc André (France), Daniel Fritz (Hermann, Germany), Vincent Gladel (BGM, France), Frans van Koppen (NautaDutilh, Netherlands), David Marks QC (3/4 South Square, United Kingdom) and Nora Wouters (McKenna, Long and Aldridge, Belgium). In preparing the draft it extensively consulted with other practitioners and academics from across Europe. 

Further information and copies of the booklet

For additional information on the "Revision of the European Insolvency Regulation – Proposals by INSOL Europe", please contact Robert van Galen at Robert.vangalen@nautadutilh.com, tel 31 20 7171814.

Please contact Caroline Taylor for a printed copy of the booklet or download a PDF here.