INSOL Europe's Proposals on Groups of Companies (in Cross-Border Insolvency): A Critical Appraisal

Authors


  • The article is based on a presentation delivered at the INSOL Europe/ Ernst-Jaeger-Institute joint international insolvency seminar, Revision of the European Insolvency Regulation Leipzig University, Germany, 14 September 2012.

E-mail: Irit.Ronen-Mevorach@nottingham.ac.uk

Abstract

International bodies have started addressing the problem of cross-border insolvency of corporate groups fairly recently. The United Nations Commission on International Trade Law has adopted a set of recommendations and the European Commission may tackle the matter in the near future, in the process of revising the European Insolvency Regulation (the ‘Regulation’). It is, therefore, timely to evaluate major proposals for the Regulation's amendment regarding groups, suggested by INSOL Europe. The paper critically evaluates the proposals regarding coordination of group cases and the concept of substantive consolidation. This evaluation takes account of both the variety of possible group structures and the goals the insolvency regime would aim to achieve. Copyright © 2012 INSOL International and John Wiley & Sons, Ltd.

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