Brexit! It would be an understatement to say that it has caused controversy and uncertainty. However within cross border insolvency some upcoming issues are quite clear.
Within the EU cross border insolvency is supported by two Directives:
- The Recast Brussels Regulation, which lets court judgments made in one EU country be recognised and enforceable in another country; and
- The European Insolvency Regulation which allows for the appointment of a trustee in bankruptcy, a liquidator, or an administrator in one EU state to be automatically recognised in other EU Jurisdictions.
These directives allow for cross border insolvencies to be handled as if they were in one jurisdiction. With the attendant automatic recognition for UK judgments and appointments this is highly beneficial for UK insolvency practitioners concerned with assets located in different EU countries.
If the UK leaves the EU without a deal the two Directives will no longer apply and recovering assets within the EU will necessarily be a lengthier process with additional expense to the insolvent estate.
For more information of the implications that this change could have on you or your business please contact Raheel Khan.
This article is for general information and does not constitute legal advice
