No one knows for certain what the future will hold for the UK and the remaining EU countries post 29 March 2019 but in the context of cross-border insolvency we do know that if there is a no-deal Brexit, that the Recast Regulation on Insolvency Regulation (EU) 2015/848 will be repealed.
So, what does this mean for UK insolvencies with a cross-border element?
In simple terms a UK appointment taker will have to apply to the EU local Court for recognition of their appointment and cannot rely on the mutual recognition which currently exists under the EU Regulation. They may also have to seek the assistance of the EU local courts to enforce judgments and orders and negotiate with foreign office holders. The UNCITRAL Model Law on Cross-Border Insolvency may plug some of the gaps on mutual recognition, but not all.
What is clear is that the support and assistance of local lawyers is key to ensuring cross-border insolvencies are managed without additional cost, frustrations and delays and that assets are recovered and value maintained for creditors.
Where can we help?
Squire Patton Boggs has one of the largest, most experienced and respected global restructuring and insolvency practices of any law firm, with more than 130 experienced lawyers in 36 offices in 15 countries collaborating on domestic and cross-border restructuring matters.
Cross-border restructuring and insolvency cases require a diverse set of skills and for our lawyers it is second nature to operate across different markets and boundaries blending our understanding of the potential risks, with a strategic approach, efficient project management, local insigt and the ability to see the bigger picture.
If the UK exits the EU without agreement, Squire Patton Boggs through its network of European offices will continue to provide office holders with the skill, support and assistance required to manage cross-border insolvencies efficiently and effortlessly whether the appointment taker is a UK insolvency practitioner seeking assistance in the EU or an office holder based in the EU seeking assistance in the UK.
We have 14 offices throughout Europe and our partners are recognised leaders in their field, competing at the top level in their markets and representing the very best clients. We boast broad sector experience in diverse industries, regularly advising on the most complex and challenging restructuring assignments. We bring you deep industry knowledge, with proven strength in diverse sectors such as automotive, manufacturing, energy and utilities, chemicals, retail and leisure. Our client base spans every type of business, both private and public, worldwide, from Fortune 100 and FTSE 100 corporations to emerging companies.
Please get in touch with your usual contact at Squire Patton Boggs for any enquiries or contact our Cross Border Restructuring Practice European Co-Chair Susan Kelly on +44 774 092 4773 or by email to firstname.lastname@example.org.