Brussels, 05/12/2015 (Agence Europe) - EU justice ministers, on Thursday 4 December, approved a political agreement (reached with the European Parliament) on new European insolvency rules that seek to give still viable firms a second chance.
The proposal for a regulation by the European Commission in December 2012 seeks to limit the damage caused by cross-border bankruptcies which every year affect 50,000 companies and make 400,000 people redundant. The new rules are expected to be formally adopted by the Council and the Parliament in spring 2015. They make provision for a broadened scope and will cover a wider range of commercial and personal insolvency proceedings, such as the so-called Spanish scheme of arrangement, the Italian reorganisation plan procedure and the Finnish consumer insolvency procedures, the Commission says.
The reform will also provide safeguards against “bankruptcy tourism”: if a debtor relocates shortly before filing for insolvency, the court will have to carefully look into all circumstances of the case to see that the relocation is genuine and not abusive.
Insolvency registers will be interconnected and available on the Commission's e-justice portal. (SP)