Many of the changes are a codification of existing case law and current practice, for example, the expansion and clarification of the concept of COMI will provide practitioners with assistance when considering whether or not there is jurisdiction to open proceedings in any particular member state.
There are 5 key areas of change:
- Scope – this has been extended but does not cover all insolvent events
- COMI – codified as set out above
- Secondary proceedings – the scope of these has been widened from just winding up proceedings, to include all rescue and pre-insolvency proceedings governed by the regulation
- Multinational Group Insolvencies – have an entirely new framework for cooperation and coordination, with a new voluntary process overseen by the Court coordinating some elements of the proceedings
- Registers of Insolvencies – all member states are required to establish and maintain electronically searchable registers of insolvency proceedings by 26 June 2018, which must be searchable centrally via the European e-justice Portal by 26 June 2019.