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Reform on the European Insolvency legislation

The revision of the European legislation on cross border insolvency rules is progressing slowly but steadily.

In contrast to the recent “new approach on insolvency” this reform is subject to the complex and cumbersome codecision procedure. As reported earlier, the European Parliament approved at large the Commission’s proposal, which, amongst others, seeks to create an EU-wide web-solution for an insolvency register, instruments to challenge the abuse of forum shopping and rules to tackle the insolvency of groups of companies and rules for secondary proceedings.

In December 2013 the rapporteur of the European Parliament, Klaus-Heiner Lehne produced a report with significant amendments, which then were almost completely adopted by the European Parliament on the 5th of February 2014 at its first reading. Soon, on the 6th of June the Ministers of Justice shall negotiate the proposal. Initially the Council has welcomed the Commission’s proposal. The Ministers of Justice were expected to reach a general agreement before the summer break. The latest messages however suggest that the debate could take more time. This legislative procedure is of high relevance.

More detailed information will follow.

Article from FENCA Newsletter (May 2014)
FENCA – Federation of European National Collection Associations
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