The Regulation of Cross-Border Insolvency and Restructuring in the European Union
Chapter 3 explores the way in which cross-border insolvencies are regulated within the EU. Associated with this theme is some background on the development of the European Insolvency Regulation (Recast) through a series of failed treaties and conventions beginning in the 1970s. The key features and function of the EIR Recast are described as well as the influence it has had on forum shopping in the European Union. This leads on to issues of substantive harmonisation in the EU. The Preventive Restructuring Directive aims to address harmonisation of restructuring measures. A consideration of the interface between the EIR Recast and the PRD leads on to the prospect that some preventive restructuring frameworks may effectively avoid inclusion in Annex A of the EIR Recast. This could potentially lead to the development of procedures that will compete across jurisdictions due to the ability to choose a forum without reference to the EIR Recast. Chapter three provides background commentary on the regulation of cross-border insolvency generally, while highlighting some of the issues that could arise depending upon the characteristics of the preventive restructuring frameworks that are eventually implemented.