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The Menu Approach Recognition And Enforcement Notes

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This is an extract of our The Menu Approach Recognition And Enforcement document, which we sell as part of our Debt Restructuring Notes collection written by the top tier of King's College London students.

The following is a more accessble plain text extract of the PDF sample above, taken from our Debt Restructuring Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:

Overview:
● S426 Insolvency Act 1986
● EU Insolvency Regulation
● Common Law
● UNCITRAL Model Law on Cross-Border Insolvency
○ Cross-Border Insolvency Regulations 2006
○ USC, Title 11, Chapter 15
● All of these four options deal with incoming cases (into the UK). The EUIR also deals with outgoing cases.
S426 Insolvency Act 1986:
● Automatic recognition of decisions made in other parts of the UK
● Assistance can also be granted on such a basis to a number of other countries
○ Hong Kong
○ Malaysia
○ Bermudas
○ Isle of Man
○ Etc.
Common Law:
● Acts as a fallback option.
● Foreign proceedings will be recognised in the UK if the state of proceedings is also the state of incorporation of the debtor company, even if its place of business or its head office is located elsewhere.
● If the state of proceedings is not the state of incorporation, it may still be recognised if the company is an English company with its place of business in the UK.
● If not, there must be a close connection.
EU Insolvency Regulation:
● Coordination of insolvency procedures relating to insolvent debtors with their COMIs or an "establishment" in an EU Member State.
● Main proceedings:
○ Opened in the state where the debtor has its COMI.
● Secondary (or territorial) proceedings:
○ Opened in the State where there is an "establishment".
○ With effect only in that Member State. This means that its effect is restricted to the assets that are located in that Member State.
○ No longer restricted to winding up proceedings.
○ Note that territorial proceedings are secondary proceedings, but without a main proceeding.
● Recognition under Article 19 EUIR: ○ Judgment to open insolvency proceedings (whether it be main, secondary, or territorial proceedings).
■ To be recognised in all Member States.
■ From the time it becomes effective in the State where proceedings were opened.
■ Subject to a public policy exception under Article 33 (due process,
right to be heard, notified, and to have access to documents.
○ Ancillary judgment of the court whose judgment it was to open insolvency proceedings is recognised under Article 19 EUIR.
■ Concerning the course and the closure of insolvency proceedings.
■ Compositions approved by the court.
■ To be recognised without further formalities.
■ Subject to public policy concerns under Article 33 EUIR.
○ English procedures covered under Annex A:
■ Winding up by the court.
■ Creditors' voluntary winding up (with court confirmation).
■ Administration.
■ Voluntary arrangements under insolvency legislation.
■ Bankruptcy or sequestration.
○ English procedures excluded:
■ Schemes of arrangement.
■ Should they be included? Why does this matter? Because schemes of arrangement do not fall under the EUIR can hence be used without
COMI transfers.
■ Brexit? https://www.gov.uk/government/publications/handling-civillegal-cases-that-involve-eu-countries-if-theres-no-brexit-deal/
handling-civil-legal-cases-that-involve-eu-countries-if-theres-nobrexit-deal
UNCITRAL Model Law:
● Transposed in the US through Chapter 15 USC, and the UK through the Cross-Border
Insolvency Regulations 2006.
UNCITRAL Model Law, as transposed into US law:

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