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04 May 2007
The Ninth National Insolvency Meeting was held at Uppsala University in February 2007. The meeting takes place every other year and gathers practitioners in the field of insolvency law, including:
The meetings focus on the need for new legislation in the field of insolvency.
The first issue raised during the meeting was public composition. Public composition was incorporated into the law on the reconstruction of enterprises, which was adopted in 1996, but use of it is rare. It was discussed whether public composition should be removed from the legislation and which types of debt should be taken into account in composition proceedings.
The government representative (since September 2006) described the work carried out by the ministry. A commission introduced changes to the priority rights of banks in insolvency proceedings. The legislation was amended on January 1 2004 and priority rights through floating charges were reduced to 55% of the banks' assets in order to create an incentive for banks to help reconstruct companies. This amendment has been heavily criticized, as banks are arguably less likely to grant credit.
Another subject which was widely discussed was the Insolvency Act. Forum shopping in international bankruptcy cases has irritated Swedish practitioners and creditors. Moreover, the issue of recovery and the application of Swedish floating charges were debated.
The second day of the meeting was devoted to the issue of rights in rem in affiliated companies. The debate was led by Justice Togny Håstad of the Supreme Court. Under Swedish law, a purchaser of movable property must take possession of the movables after the acquisition in order to be protected against the vendor's creditors. This principle is derived from case law, and a number of Supreme Court cases were discussed. One suggestion was to introduce a register of transfers of movable property.
For further information on this topic please contact Margareta Andersson or Henrik Gallus at Wistrand Advokatbyrå by telephone (+46 31 771 21 00) or by fax (+46 31 771 21 50) or by email (email@example.com or firstname.lastname@example.org).
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