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Some Observations on the New Group Coordination Procedure of the Reformed European Insolvency Regulation
Author(s) -
Thole Christoph,
Dueñas Manuel
Publication year - 2015
Publication title -
international insolvency review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.125
H-Index - 7
eISSN - 1099-1107
pISSN - 1180-0518
DOI - 10.1002/iir.1242
Subject(s) - insolvency , position (finance) , variety (cybernetics) , plan (archaeology) , addendum , group (periodic table) , business , law and economics , accounting , economics , computer science , law , political science , finance , chemistry , artificial intelligence , archaeology , organic chemistry , history
Abstract The recast of the European Insolvency Regulation introduces a new coordination procedure for handling insolvencies of groups of companies. The procedure relies on a group coordinator to create a helpful group insolvency plan while the individual insolvency proceedings remain independent. Albeit being a step into the right direction, the procedure has significant shortcomings such as the weak position of the coordinator, a liberal opt‐in and opt‐out mechanism and the problem of forum shopping. In the end, the new procedure can be a valuable tool in limited cases and should be merely seen as an addendum to a variety of possibilities to handle group insolvencies. Copyright © 2015 INSOL International and John Wiley & Sons, Ltd