Topic 9 - International insolvency proceedings

Question 1

What are the core principles of insolvency law?

Answer 1

Principle of equal treatment & Principle of unity

Question 2

What are the functions of insolvency law?

Answer 2

Debtor recovery,
Debtor diverstment
Debt adjustment &
Creditor satisfaction

Question 3

What does the general rule article 3.1 state?

Answer 3

Courts of the Member State where the centre of the debtor’s main interests is situated, shall have jurisdiction to open insolvency proceedings

Question 4

What are the presumptions to determine the COMI depending on the type of debtor?

Answer 4

1) Registered office for debtors that are companies or legal persons
2) Principal place of business for debtors that are businessmen
3) Habitual residence for debtors that are individuals

Question 5

What is the law applicable to insolvency proceedings?

Answer 5

Lex concursus & Courts apply their own law