News

As noted in the November newsletter, the European Commission has launched the process building up to a new instrument in the insolvency law field. Building on the success of the European Insolvency Regulation (Recast) 2015 and the Preventive Restructuring Directive 2019, DG Justice has taken the lead in a project arising from the work of the Experts Group on Restructuring and Insolvency and has identified possible avenues to pursue towards the convergence of insolvency law rules within the EU.
 
Areas of interest announced so far for this initiative include the prerequisites for commencement of proceedings (including a definition of insolvency); avoidance actions and the effects of claw-back rights; asset-tracing frameworks; directors’ duties in the vicinity of insolvency; the position of secured creditors and the balance between secured creditors and other stakeholders (e.g., employees, suppliers); as well as the issue of court expertise and the training of judges.
 
Following on the first phase of consultation in November 2020, in which feedback on an Inception Assessment was sought by DG Justice about the desirability of an initiative, a second phase in the consultation process has now been opened. This invites responses on the areas already identified as possible subjects of the initiative, particularly seeking statistical support for priorities to be taken into account in the next phases leading to the drafting of a text.
 
This is a further excellent opportunity for INSOL Europe members to help determine the shape of future insolvency law in Europe by assisting in the formulation of priorities for the European Commission initiative. To this end, INSOL Europe members in all jurisdictions, but especially those in recent EU accession and candidate countries, can help by filling out the online questionnaire, which is available at the European Commission website at: https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12592-Insolvency-laws-increasing-convergence-of-national-laws-to-encourage-cross-border-investment/public-consultation
 
Please note that there is a simple registration process to access the questionnaire and that the deadline is Friday 26 March 2021.