CERIL

In the CERIL Statement 2021-2, CERIL identifies the fact that the EU ‘group coordination proceedings’ system is not used in practice, resulting in inefficient administration of insolvency proceedings relating to different companies forming part of a group of companies. 

Since the end of 2020, CERIL Working Parties 9 (Code of conduct for the group coordinator) and 3 (Enterprise groups) conducted a preliminary impact study into the use in European insolvency and restructuring practice of ‘group coordination proceedings’, in the meaning of Chapter V (Articles 61-77) of the European Insolvency Regulation (Recast) (Regulation 2015/848).

The study comprised of two parts:

1. a review of relevant literature on the subject, and
2. interviews with relevant insolvency practitioners within the EU.

In addition to the Statement, the reporters present an annex comprising an overview of the pros and cons of the current framework for EU group coordination proceedings.

In summary, the outcome of the study could not have been clearer – and more disappointing. In practical terms: some four years after the European Insolvency Regulation (Recast) became binding, not a single significant case of a cross-border group insolvency has been handled under the rules on group coordination proceedings. This CERIL Statement aims to timely identify the considerations and reflections in the appreciation and use of group coordination proceedings throughout the EU.

CERIL feels that time is ripe to undertake specific steps to develop proposals for the modification of the current rules in order to enable group coordination proceedings to use their full potential.

This Statement and Report were prepared by:

Reporters:

• Prof. Andreas Geroldinger,
• Dr. Myriam Mailly,
• Prof. Stephan Madaus, and
• Nora Wouters.
   

Download

The CERIL Statement 2021-2 can be downloaded here.

The Annex to the CERIL Statement 2021-2 can be downloaded here.