Vol 16 (2019) - Issue 4

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Brussels Ia or EIR Recast? The Allocation of Preventive Restructuring Frameworks

Synopsis

On 28 March 2019, the European Parliament voted in favour of the Proposed Directive on Preventive Restructuring Frameworks. The Directive will be of great importance to future pre-insolvency restructurings in Europe. In some situations, a decision by a national judicial or administrative authority is required. The question arises as to which regime will need to be used in case recognition and enforcement of the authority’s decision is sought in other Member States. This article discusses recognition and enforcement under the Brussels Ia Regulation and the Recast European Insolvency Regulation. It comes to the conclusion that preventive restructuring frameworks can be allocated to both Regulations. They are civil and commercial matters and will therefore fall within the material scope of Brussels Ia. This remains so until a Member State has successfully added its implemented framework to Annex A EIR Recast by way of the ordinary legislative procedure.