The European Commission has published forms to be used under the Recast European Insolvency Regulation (Recast EIR).
Insolvency Practitioners will need to be familiar with the forms and the circumstances in which they should be used.
In summary, the new forms are:
1. A standard notice form to be used by courts or Insolvency Practitioners to inform known foreign creditors of the opening of insolvency proceedings;
2. A standard claim form to be used by foreign creditors to lodge claims;
3. A standard form to be used by Insolvency Practitioners appointed in respect of group members for the lodgement of objections in group coordination proceedings; and
4. A standard form for the electronic submission of individual requests for information via the European e-Justice Portal.
The new forms should only be used in insolvency proceedings subject to the Recast EIR. The Recast EIR applies to insolvency proceedings relating to debtors that have their centre of main interests in an EU member state (other than Denmark) where the proceedings are opened on or after 26 June 2017.
Standard notice form
The court or Insolvency Practitioner appointed by the court is under a duty to immediately inform known foreign creditors that insolvency proceedings have been opened. In practice in the United Kingdom the duty will lie with the Insolvency Practitioner and the standard form should be used.
Standard claim form
A foreign creditor may lodge its claim in the insolvency proceedings using the standard claim form, but does not have to. If the standard claim form is not used, the claim must contain all of the information required by Article 55 of the Recast EIR.
Standard form for objections in group coordination proceedings
The Recast EIR has introduced a new voluntary process overseen by the courts for coordinating some elements of insolvency proceedings opened in different member states and relating to different members of a corporate group. This process is referred to as group coordination proceedings. As the process is voluntary, the Insolvency Practitioner appointed in respect of any group member may object to:
• The inclusion within the group coordination proceedings of the insolvency proceedings in respect of which they have been appointed; or
• The person identified as group coordinator.
While the use of the new standard form to lodge such an objection is optional, in practice it is likely to be the best way to ensure that all mandatory information is included. The notes to the form provide helpful guidance as to the required information and the way in which the objection should be lodged.
Standard form for requests for information via the European e-Justice Portal
All member states are required to establish and maintain electronically searchable registers of insolvency proceedings by 26 June 2018. These must be linked and searchable centrally via the European e-Justice Portal by 26 June 2019. However, the right to make requests for information to individual EU member states is in force now. The standard form should be used to request information regarding individual debtors (as opposed to corporate debtors) and submitted electronically via the European e-Justice Portal.
The standard forms are set out in Annexes I to IV of the Commission Implementing Regulation (EU) 2017/1105, which can be found here.
If you are an Insolvency Practitioner dealing with foreign debtors, creditors or group coordination proceedings and would like further advice please contact a member of the Restructuring and Insolvency team.
This publication is intended for general guidance and represents our understanding of the relevant law and practice as at July 2017. Specific advice should be sought for specific cases. For more information see our terms & conditions.