Commenting on the government’s position paper on post-Brexit civil judicial co-operation C which states which the government will hope to “[reflect] closely the substantive principles of cooperation under the current EU framework” C insolvency and restructuring trade body R3, says:
“The UK’s insolvency and restructuring profession are going to be encouraged because of the position the UK government has adopted on resolving cross-border insolvencies post-Brexit. We’re pleased the govt is playing what R3 has called for.
“The existing set-up C where insolvency appointments and procedures are automatically recognised over the EU C is an essential part in the UK and EU insolvency and restructuring framework and choices will not bring the identical degree of advantages to creditors and investors both here along with the EU. Automatic recognition is win-win to your UK and Brussels.
“Mirroring the present EU-UK insolvency relationship are going to be vital for ensuring Brexit won’t threaten britain’s status as a possible international restructuring and insolvency ‘hub’.
“If Brexit throws up barriers to resolving cross-border insolvencies or restructurings, there’re planning to consider the way of a plethora of applications to courts by insolvency practitioners to recognise qualifications which all Members States happen to be happy to recognise during the last 15 years.? This can add time and cost to insolvency proceedings, reduce potential returns for creditors and investors after insolvencies, and would damage great britain’s reputation as the area to do business.
“With automatic recognition, costly court proceedings might be skipped and there’s a penetration of certainty about whether assets to the continent is usually retrieved for UK-based creditors C or that assets throughout the uk might be retrieved for creditors from the EU.
“It’s now approximately the EU to discover chance that EU-based creditors and investors could possibly be harmed if EU insolvency practitioners and lawyers struggle for recognition in great britan.”