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.
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...