2017-03-doc5 EU insolvency and asset location

Article 2(9) of the EU Insolvency Regulation (recast) (EIR 2015) is certainly an improvement of the set of rules of the location of assets in insolvency cases crossing borders within the EU. This serves deal certainty, in the sense of strategic planning of asset location, as well as in cases where it would come to legal conflicts about where assets are located. This is the short conclusion of an article (see the draft text for: Journal of International Banking Law and Regulation due for publication in May 2017). It is indeed of prime importance where an asset can be located, as was the case in Nortel Network. The mechanism the EIR 2015 uses is localisation rules, indicating where a debtor’s assets must be deemed to be located. The EIR 2015 contains eight of these rules, including rules for shares, financial instruments, cash held in bank accounts and copyrights. See Proof corr Wessels_2017_JIBLR_Issue_5_Proof_4

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