The Implementation of the New Insolvency Regulation
Publication Date: 16-11-2017
Max Planck Institute Luxembourg Articles 36 ff EIR Contrary to the previous case law of the CJEU, the recast of the Insolvency Regulation aims to reduce the opening of secondary proceedings which may hamper the efficient administration of the insolvency estate. The main legislative motivation for this reduction is the detrimental effect secondary proceedings may have on carrying out the administration effectively: While organizational and procedural difficulties as well as potential disputes between the involved insolvency practitioners are both playing their part, the opening of parallel proceedings undoubtedly raises costs caused by the appointment of one or more additional insolvency practitioners and the involvement of another insolvency court, and may lead to delays. In particular, the simultaneous application of different insolvency statutes is prone to increase complexity and aggravate the coordination of proceedings, especially when it comes to the realization of assets.