The European Court of Justice recently extended the international jurisdiction of the court where the insolvency was opened through so-called 'annex competence' and insolvency-related 'ancillary claims and proceedings'. This decision clarifies that creditors' committee member activities are inseparably linked with insolvency proceedings and their effects. Although the case at hand viewed the creditors' committee as compulsory, the same should also apply to members of a voluntary creditors' committee.
The European Commission has proposed a directive on preventive restructuring frameworks in order to reduce significant barriers to the free flow of capital caused by differences in member states' restructuring and insolvency frameworks. It aims for all member states to implement key principles for effective preventive restructuring and second-chance frameworks, as well as measures to improve the quality and efficiency of all types of insolvency procedure by reducing their length and associated costs.
The European Court of Justice recently provided useful guidance on how to interpret Article 13 of the EU Insolvency Regulation. Although the case itself might not be unusual, the number of non-parties which submitted observations to the court – including the European Commission and the German, Greek, Spanish and Portuguese governments – demonstrates that the outcome was eagerly awaited.