Brexit further blurs EU insolvency picture

Author: Lizzie Meager | Published: 6 Jul 2016
It's unclear whether proceedings opened in the UK will be recognised elsewhere post-Brexit
Britain’s June vote to leave the EU has far-reaching ramifications for European insolvency law, and could see proceedings opened under English law disregarded by other jurisdictions.

Although it will remain within the bloc for at least two years from when article 50 is triggered, corporate restructurings can easily take considerably longer than that. Stephen Phillips, co-head of European restructuring at Orrick Herrington & Sutcliffe said that the use of English proceedings by European companies is inevitably going to slow down. "Unless there's an agreement on mutual recognition, the use of English proceedings for European companies is dead," he said.

And Chris Mallon, head of corporate restructuring at Skadden Arps Slate Meagher & Flom in London, echoed that view: “For a complicated restructuring that may involve a prepack administration, it’s looking like that would need to be done in the next...