How to build a pan-European insolvency regime

Author: Lizzie Meager | Published: 3 Nov 2015

To achieve a pan-European insolvency regime, lawmakers must select the most effective aspects of insolvency laws from around the world and build something entirely new.

The Capital Markets Union’s (CMU) action plan has labelled a harmonised, EU-wide insolvency regime as a long-term goal it will address starting 2016. And organisations such as Insol International and the UN Commission on International Trade Law (Uncitral) are continuing to push towards the same goal, albeit on a larger scale.

These recent developments led speakers at the Association for Financial Markets in Europe’s (Afme) annual European high-yield conference in London last month to fight the case for and against harmonisation.

"For the core issues, like financing the restructuring, security and shareholder rights, having different results in different jurisdictions is a complete mess," said Andrew Wilkinson, a partner at Weil Gotshal & Manges during the session.

The problem is the diversity of legal...