Recognition of the UK bankruptcy in the EU
Recognition of the UK insolvency proceedings throughout the EU is based on the EC Regulation on Insolvency Proceedings 1346/2000, which came into force on 31 May 2002. The regulation is directly applicable in 26 EU member states (Denmark excepted) and takes effects in the domestic legal system of any particular member state automatically, without the need for that member state to transpose it into national legislation.
The general principle of the regulation is that any judgement opening insolvency proceedings handed down by a court of a member state where the debtor’s Centre of Main Interests (COMI) situated is to be recognised in all the other member states from the time that it becomes effective in the state where proceedings are opened. This rule shall also apply where, on account of his capacity, insolvency proceedings cannot be brought against the debtor in other member states.
The law of the state of the opening of proceedings shall determine the conditions for the opening of those proceedings, their conduct and their closure. However, any member state may refuse to recognise insolvency proceedings opened in another member state or to enforce a judgment handed down in the context of such proceedings where the effects of such recognition or enforcement would be manifestly contrary to that state’s public policy, in particular its fundamental principles or the constitutional rights and liberties of the individual.
Please follow the links to access the full text of the EC Regulation on Insolvency Proceedings 1346/2000 in English: http://tinyurl.com/n5pwkg
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