The European Insolvency Regulation (Recast): the obligation to cooperate, rescue and the Preventive Restructuring Directive

Abstract

The European Insolvency Regulation (Recast) 2015/848 came into effect in 2017 following a review that was mandated by the European Insolvency Regulation 2000/1346. The amendments made to the Regulation reflected to a large extent the interpretation and clarifications that came out of several cases explored in Chapter 4 of this monograph. A key change in the EIR Recast was the introduction of a direct obligation for courts and practitioners to cooperate during cross-border insolvency and restructuring cases, derived from Articles 41-44 (single debtors) and Articles 56 and 57 relating to corporate groups. There remain many conceptual challenges relating to the application of these obligations including the exact nature and effect of these obligations. More importantly the Chapter explores the practical reality that cooperation obligations have not been invoked and furthermore that coordination of proceedings under both Regulations have not been a feature of practise in insolvency. The broader implications for EU integration are also considered and will be developed in later chapters.