Burgo Group SpA v Illochroma SA (in liquidation) and another – WLR Daily
‘Article 3(2) of Council Regulation (EC) No 1346/2000 of 29 May 2000 on insolvency proceedings meant that, where winding-up proceedings were opened in respect of a company in a member state other than that in which it had its registered office, secondary insolvency proceedings could also be opened in respect of that company in the other member state in which its registered office was situated and in which it possessed legal personality. The question as to which person or authority was empowered to seek the opening of secondary proceedings had to be determined on the basis of the national law of the member state within the territory of which the opening of such proceedings was sought pursuant to article 29(b) of the Regulation. The right to seek the opening of secondary proceedings could not, however, be restricted to creditors who had their domicile or registered office within the member state in whose territory the relevant establishment was situated, or to creditors whose claims arose from the operation of that establishment. Where the main insolvency proceedings were winding-up proceedings, the decision as to whether the court before which the action seeking the opening of secondary insolvency proceedings had been brought could take account of criteria as to appropriateness was governed by the national law of the member state within the territory of which the opening of secondary proceedings was sought. However, when establishing the conditions for the opening of secondary proceedings, member states had to comply with EU law and, in particular, its general principles, as well as the provisions of the Regulation.’
WLR Daily, 4th September 2014
Source: www.iclr.co.uk
