On 20 May 2015 the European Parliament and the Council enacted the EU Regulation No. 848/2015 on insolvency proceedings, published on 5 June 2015 in the Official Journal of the European Union L 141/19.
The Regulation entered into force on 25 June 2015 but will be applicable to relevant insolvency proceedings from 26 June 2017, recasting the previous discipline.
The Regulation implements a new ‘rescue and recovery’ perspective on insolvency, considering insolvency not only as liquidation but also facilitating the survival of businesses and provide a second chance for entrepreneurs. The new rules are aimed to make cross-border insolvency proceedings more “efficient and effective”, to improve the proper functioning of the internal market, and discouraging abusive “forum shopping”. In light of these objectives, the Regulation 2015/848 implements a number of changes in the discipline of cross-border insolvency proceedings.
Therefore the Regulation includes provisions governing jurisdiction for opening insolvency proceedings and actions which are directly derived from insolvency proceedings and are closely linked with them. The Regulation also contains provisions regarding the recognition and enforcement of judgments issued in such proceedings, and provisions regarding the law applicable to insolvency proceedings. In addition, the Regulation lays down rules on the coordination of insolvency proceedings which relate to the same debtor or to several members of the same group of companies.
Bankruptcy, proceedings relating to the winding-up of insolvent companies or other legal persons, judicial arrangements, compositions and analogous proceedings and actions related to such proceedings are excluded from the scope of Regulation (EU) No 1215/2012 of the European Parliament and of the Council ( 4 ). Those proceedings are covered by this Regulation. The interpretation of this Regulation avoids as much as possible regulatory loopholes between the two instruments. However, the mere fact that a national procedure is not listed in Annex A to this Regulation does not imply that it is covered by Regulation (EU) No 1215/2012.
In order to achieve the aim of improving the efficiency and effectiveness of insolvency proceedings having crossborder effects, it is necessary, and appropriate, that the provisions on jurisdiction, recognition and applicable law in this area are contained in a Union measure which is binding and directly applicable in Member States.
This Regulation apply to insolvency proceedings which meet the conditions set out in it, irrespective of whether the debtor is a natural person or a legal person, a trader or an individual. Those insolvency proceedings are listed exhaustively in Annex A. In respect of the national procedures contained in Annex A, this Regulation apply without any further examination by the courts of another Member State as to whether the conditions set out in this Regulation are met. National insolvency procedures not listed in Annex A are not covered by this Regulation.
The official text can be found here.