The European World of Insolvency Tourism: Renewed, But Still Brave?

Mankowski, Peter

doi:10.1007/s40802-017-0080-7

Cited by 1 publication

(1 citation statement)

References 27 publications

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“…129 Forum shopping in cross-border insolvencies occurs if a company relocates its COMI to another jurisdiction, to benefit from the more favourable insolvency or restructuring legislation of that jurisdiction. 130 Such a COMI-shift can be achieved by either moving a company's registered office to another country, or by moving a company's head office to another country while leaving behind the registered office. 131 The EIR Recast is designed to prevent forum shopping, which is clearly reflected in Recitals 5 and 29 of the Regulation.…”

Section: Achieving the Goals Of The Restructuring Plan -Forum Shopping On The European Levelmentioning

confidence: 99%

Crises, Creditors and Cramdowns: An evaluation of the protection of minority creditors under the WHOA in light of Directive (EU) 2019/1023

Volberda¹

2021

Utrecht Law Review

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Covid-19 has severe economic consequences, leading to an increasing amount of businesses facing overwhelming debts. Since the financial crisis of 2008 the European Union has taken on a more rescue-oriented approach towards bankruptcy, resulting in Directive (EU) 2019/1023. This Directive creates a framework for pre-insolvency restructuring, thereby avoiding unnecessary bankruptcies. Accordingly, pre-insolvency restructuring is a valuable instrument in mitigating the negative economic effects of Covid-19. The Netherlands has recently adopted the Act on the Confirmation of Private Plans (WHOA), National Legislation on pre-insolvency restructuring. In order to balance the rights of secured and unsecured creditors the 20%-rule was adopted. This rule guarantees small-scale Small-to-Midsized (SME)-creditors the right to satisfaction of 20% of their claims in restructuring proceedings. In this paper, I evaluate whether the 20%-rule is in accordance with the Directive. I argue that the 20%-rule is in line with the Directive, but that the overly restrictive system of judicial review under the WHOA hampers its application in practice. Therefore, the Dutch legislator should allow for more room for judicial interpretation on the suitability of the application of the 20%-rule. This more nuanced approach better aligns the 20%-rule with the European Restructuring Directive.

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Section: Achieving the Goals Of The Restructuring Plan -Forum Shopping On The European Levelmentioning

confidence: 99%

Crises, Creditors and Cramdowns: An evaluation of the protection of minority creditors under the WHOA in light of Directive (EU) 2019/1023

Volberda¹

2021

Utrecht Law Review

View full text Add to dashboard Cite

show abstract

The European World of Insolvency Tourism: Renewed, But Still Brave?

Cited by 1 publication

References 27 publications

Crises, Creditors and Cramdowns: An evaluation of the protection of minority creditors under the WHOA in light of Directive (EU) 2019/1023

Crises, Creditors and Cramdowns: An evaluation of the protection of minority creditors under the WHOA in light of Directive (EU) 2019/1023

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