Great challenges in the field of insolvency: Brexit and the COVID-19 crisis
The Belgian and Luxembourgish Law Review Droit du Financement de l’Économie recently featured a publication entitled ‘Dans le domaine de l’insolvabilité, Brexit et crise sanitaire constituent un sacré défi’. In this publication, Ms Inghels reviews how the field of insolvency is currently impacted by both Brexit and the COVID-19 crisis. She reviews these topics in view of two statements and reports, both published by CERIL on these matters.
Post-Brexit cross-border restructuring
CERIL Statement and Report 2018-2 on Cross-border restructuring and insolvency post-Brexit highlights the relationship between the EU and the UK after Brexit in the area of restructuring and insolvency law. It is the result of a project chaired by Prof. Francisco Garcimartin (University Autónoma of Madrid and Linklaters), and Prof. Michael Veder (Radboud University Nijmegen and RESOR), with assistance of Prof. Ángel Espiniella (University of Oviedo) who, with a CERIL working group, investigated the possible consequences of Brexit on cross-border restructuring and insolvency in relation to the remaining EU.
The Statement and Report present the results of this study and seeks to formulate a position on the nature and content of a possible future instrument governing the relationships between the EU and the UK after Brexit in the area of restructuring and insolvency law.
COVID-19 and insolvency legislation
In March 2020, the CERIL Executive Statement 2020-1 on COVID-19 and insolvency legislation was published. The statement was prepared by Prof. Stephan Madaus (Halle-Wittenberg) and Prof. Em. Bob Wessels (University of Leiden) (Reporters), assisted by Gert-Jan Boon (Associate Researcher), in addition to the other members of the Executive.
With the COVID-19 (corona) virus reaching pandemic status, CERIL took note of the devastating effects that the healthcare measures have on businesses. The CERIL Executive calls upon EU and European national legislators to take immediate action and adapt insolvency legislations where necessary in light of the current extraordinary economic situation and to prevent unnecessary bankruptcies of entrepreneurs.