{"id":3226,"date":"2021-05-04T10:46:38","date_gmt":"2021-05-04T09:46:38","guid":{"rendered":"https:\/\/amisolicitors.co.uk\/?p=3226"},"modified":"2021-05-04T10:49:26","modified_gmt":"2021-05-04T09:49:26","slug":"understanding-cross-border-insolvency-post-brexit","status":"publish","type":"post","link":"https:\/\/amisolicitors.co.uk\/2021\/05\/04\/understanding-cross-border-insolvency-post-brexit\/","title":{"rendered":"Understanding Cross-Border Insolvency Post-Brexit"},"content":{"rendered":"\t\t
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The UK-EU Trade Deal left lots of questions unanswered for many law experts and corporations. One of the main concerns was recognising and enforcing foreign insolvency proceedings when there is a cross-border element.<\/p>\n

Since EU Insolvency Regulations (EIR) does not apply to these cases, we need to look at other regulations to deal with these situations. Presently, insolvency-related domestic laws of each EU member state will apply to conduct the proceedings further. These change requires additional steps and formal applications to ensure that both countries are on the same page.<\/p>\n

Here are a few things you should know:<\/em><\/p>\n

Recognition of EU Insolvency Proceedings in the UK<\/h2>\n

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The end of the transition period marks the beginning of cross-border insolvency post-Brexit. Any new EU insolvency proceedings seeking recognition and enforcement in the UK will have to adhere to British Cross-Border Insolvency Regulations. That includes adopting the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Cross-Border Insolvency.<\/span>
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At present, only four out of twenty-seven EU member states<\/a> have agreed to use the UNCITRAL Model Law. These members include Poland, Greece, Romania, and Slovenia. Their acceptance simplifies the rules surrounding recognition and enforcement of cross-border insolvency laws.<\/p>\n

Before Brexit, these rules applied to all non-EU insolvency cases that originated outside the UK. The proceedings require a formal court application by foreign officeholders who deal with financial assets in the UK. The request gets thoroughly reviewed to evaluate the \u2018insolvent\u2019s main interests\u2019.<\/p>\n

After that, the court will provide relevant assistance to support the foreign officeholder. If the foreign insolvency proceedings get recognised as the primary proceeding, the English court will hold their civil proceedings against the debtor. In these situations, the English court grants complete authority to foreign officeholders. That means the insolvency practitioners can freely manage assets present in the UK unless stated otherwise.<\/p>\n

Recognition of English Insolvency Proceedings in the EU<\/h2>\n

The European Regulation on Insolvency Proceedings (the EIR) no longer applies to the UK. That means the EU will not recognise any English insolvency proceedings by default. The UK officeholder must provide relevant evidence to support their case. <\/p>\n

There are multiple ways to acquire recognition<\/a>:<\/p>\n