EU insolvency rules: where do we stand now?

Author: | Published: 24 Mar 2014

Recent progress in proposals to amend the European Insolvency Regulation could change how debt restructurings are carried out in the region

The European framework for dealing with cross-border insolvencies, known as Council Regulation No 1346/2000 on Insolvency Proceedings (EIR), has been subject to a long-running review process. This has involved a public consultation, expert analysis, the preparation of proposals from the European Commission to amend the EIR, and input on those proposals from the European Parliament's committee on legal affairs.

This culminated in the EU Parliament adopting an amended version of the Commission's proposals on February 5 2014. While the story is still far from over, especially as the Council of the EU has yet to give its views, the recent EU Parliamentary vote offers a good opportunity to step back and address two key questions. First, what exactly is now being proposed? And second, to what extent are...