Commenting about the government’s position paper on post-Brexit civil judicial co-operation C which states that your government will aim to “[reflect] closely the substantive principles of cooperation in the current EU framework” C insolvency and restructuring trade body R3, says:
“The UK’s insolvency and restructuring profession will likely be encouraged because of the position the UK government has adopted on resolving cross-border insolvencies post-Brexit. We’re pleased government entities is being attentive to what R3 has considered necessary.
“The existing set-up C where insolvency appointments and procedures are automatically recognised across the EU C is a vital part with the UK and EU insolvency and restructuring framework and available alternatives won’t bring the same higher level of good things about creditors and investors both here as well as in the EU. Automatic recognition is win-win for that UK and Brussels.
“Mirroring the previous EU-UK insolvency relationship are going to be vital for ensuring Brexit does not threaten great britain’s status for an international restructuring and insolvency ‘hub’.
“If Brexit throws up barriers to resolving cross-border insolvencies or restructurings, they may be likely to go ahead and take type of numerous applications to courts by insolvency practitioners to uncover qualifications which all Members States are content to recognise during the last Many years.? This is able to add cost and time to insolvency proceedings, reduce potential returns for creditors and investors after insolvencies, and would damage great britain’s reputation being a spot to ply their trade.
“With automatic recognition, costly court proceedings could be skipped and there is a a higher level certainty about whether assets to the continent are usually retrieved for UK-based creditors C or that assets in the UK may be retrieved for creditors inside EU.
“It’s now as much as the EU to learn raise the risk that EU-based creditors and investors could possibly be harmed if EU insolvency practitioners and lawyers struggle for recognition in great britan.”