Recognition of UK Insolvency Proceedings Post-Brexit: The Impact of a ‘No Deal’ Scenario

Christopher Umfreville, Paul Omar, Heike Luecke, Irene Lynch Fannon, Michael Veder, Laura Carballo Pineiro

Research output: Contribution to journalArticle

Abstract

This paper examines the impact of a ‘no deal’ or ‘hard’ Brexit on the recognition of insolvency proceedings commenced in the UK by the remaining Member States of the European Union (‘EU’) post-Brexit. The paper considers the framework currently implemented by the Recast European Insolvency Regulation and the possible approaches when it will cease to apply to proceedings commenced post-Brexit. The paper identifies that there will be no overarching framework in the event that ‘no deal’ is reached between the UK and EU for post-Brexit arrangements, resulting in reliance on individual Member States’ domestic laws to determine recognition of insolvency proceedings commenced in the UK. The paper sets out the contrasting approaches of five of the UK’s key trading partners in the EU: France, Germany, Ireland, the Netherlands and Spain. The paper concludes that UK insolvency proceedings will not be recognised in a consistent manner in these Member States, which will be detrimental to stakeholders in, and ultimately the economies of, the UK and these Member States. In doing so, the paper underlines the importance of an agreement being reached between the UK and the EU on the recognition of cross-border insolvency proceedings for the benefit of all parties.
Original languageEnglish
Pages (from-to)422-444
JournalInternational Insolvency Review
Volume27
Issue number3
Early online date10 Oct 2018
DOIs
Publication statusPublished - 6 Nov 2018

Bibliographical note

© 2018 The Authors International Insolvency Review published by INSOL International and John Wiley & Sons Ltd.

This is an open access article under the terms of the Creative Commons Attribution‐NonCommercial‐NoDerivs License, which permits use and distribution in any medium, provided the original work is properly cited, the use is non‐commercial and no modifications or adaptations are made.

Keywords

  • insolvency
  • cross-border
  • Brexit
  • judicial cooperation
  • European Union
  • recognition

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