1 February 2021
R&I update - February 2021 – 4 of 4 Insights
The UK's withdrawal from the European Union has created uncertainty around insolvency law. Let's look at how things have changed in the wake of Brexit, and what that means for current and future German insolvency proceedings.
According to Art. 67(3)(c), Art. 126 of the Withdrawal Agreement, the Regulation (EU) 2015/848 on insolvency proceedings (EUInsRe) only applies to insolvency proceedings commenced before the end of the transitional period on 31 December 2020. This means that, in some cases, the EUInsRe will continue to apply to insolvency proceedings relating to the UK for a very long time, as larger international insolvency proceedings usually take several years.
That said, The Trade and Cooperation Agreement doesn't contain any provisions regarding insolvency law. From the point of view of Germany and other EU Member States, the UK therefore shifts from being Member State to a third country.
To discuss any of the issues raised in this article in greater detail, please reach out to a member of our Restructuring & Insolvency team.