The European Insolvency Regulation and the Harmonization of Private International Law in Europe

Extract

On 31 May 2002, the EC Regulation on insolvency proceedings entered into force. As from that date, insolvency proceedings that are opened in any of the Member States of the European Union will in principle qualify for recognition in the other Member States, with the exception of the Kingdom of Denmark. On the whole, the Regulation contains the same provisions as the European Convention on Insolvency Proceedings that was ready for signature in 1995, but which never entered into force. Like the 1995 Convention, the present Regulation mainly contains provisions pertaining to the conflict of laws and only a few rules of uniform law. Moreover, the Regulation contains the same plurality of insolvency proceedings as the 1995 Convention: in addition to main insolvency proceedings that are recognised in the other Member States, territorial insolvency proceedings may be opened in the Member States where the debtor has an establishment.