Assets remaining in the secondary insolvency proceedings

Abstract

This part reviews assets that remain in the secondary insolvency proceedings, which is covered in Article 49 of the EU Regulation on Insolvency Proceedings (EIR). It clarifies the task of the insolvency practitioner appointed in secondary insolvency proceedings to make a transfer of any assets remaining to the main insolvency proceedings. It also deals with the situation of a surplus remaining in secondary insolvency proceedings after the satisfaction of all allowed creditors’ claims. The part reflects the primary or dominant nature of main insolvency proceedings and provides an equivalent rule in favour of secondary proceedings. It describes the obligation of the insolvency practitioner in secondary proceedings to transfer the surplus as a uniform substantive law provision that applies in independent or territorial proceedings.