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CMS e-guide: Restructuring, Insolvency and Distressed Debt Trading in Europe |
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Date: 01/06/2011
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Martin Brown
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This guide provides a comparative analysis of certain key areas of law and procedure for those involved in or affected by financial distress of a corporation and the trading of distressed debt across Europe.
One of the main challenges when dealing with financially distressed businesses with operations in more than one country is that each country has its own unique insolvency and restructuring laws. There is only one piece of pan-EU legislation: the EC Regulation on Insolvency Proceedings , which came into force in May 2002 (referred to in this guide as the "Regulation"). The Regulation recognises the differing laws across the region and the impracticability of attempting to formulate a common code of insolvency law. The Regulation was passed with the relatively modest ambition of codifying an agreement on significant aspects of cross-border insolvencies so that it is easier for insolvency practitioners to deal with cross-border insolvencies.
There is one other piece of international law designed to assist in the area of cross-border insolvency: the UNCITRAL Model Law on cross-border insolvency, which was adopted by the United Nations Commission on International Trade Law in 1997 and has since been implemented into local legislation by several countries including the UK, Poland, Slovenia, Romania, the US and Japan. In the countries where it has been adopted, the UNCITRAL Model Law deals with the recognition of foreign insolvency proceedings and co-operation between courts and competent authorities involved in cases of cross-border insolvency.
The CMS e-guide: Restructuring, Insolvency and Distressed Debt Trading in Europe is only available as an online document, which can be accessed via: http://eguides.cmslegal.com/insolvency/index.aspx
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