On 6 June, the Justice and Home Affairs Council adopted its general approach on the proposal for new insolvency proceedings legislation. The Commission proposed a regulation amending the currently in force insolvency proceedings regulation in December 2012. According to the Commission, one in four insolvency proceedings in the Member States have cross-border element. Every year, in such proceedings, 1.7 million jobs are put at stake. EU legislation on the matter to govern cross-border cases is therefore justified. The current regulation has been in force since 2002. The more than 10 years of its application pointed at several issues that could be assessed. The proposed amendment puts more emphasis on restructuring, instead of liquidation, foresees interconnection of national insolvency registers, provides framework for insolvency proceedings involving cross-border groups companies and more. According to the Council, the new regulation is in line with the current EU goal of economic recovery since it makes insolvency procedures more effective. The European Parliament backed the proposal overwhelmingly in February. Now, based on the general approach adopted by the Council, the negotiators for the EP, Commission and the Member States will work on a final text. The final adoption of the regulation is expected by the end of this year.
2nd May 2018