20 April 2021
The Conference on European Restructuring and Insolvency Law (CERIL) has reported that a CERIL Working Party conducted a survey on issues of international jurisdiction for individual legal cross-border actions that ‘derive directly from public collective insolvency proceedings and are closely linked with them’.
Lexis®Library update: To resolve uncertainty on these actions, CERIL proposed a short work of reference to classify and distinguish between annex actions and non-annex actions. This work of reference has been included in CERIL's 2021 report on identifying annex actions under Article 6(1) of the European Insolvency Regulation 2015.
The study found three types of annex action:
- clear annex actions
- clear non-annex actions, and
- actions with relevant uncertainty about their classification
The report sets out the categorisation in clear annex actions and clear non-annex actions. The last category, actions with relevant uncertainty about their classification, has been given ample thought by CERIL, with the following subjects considered:
- actions brought by the insolvency practitioner in relation to the assumption or the termination of executory contracts
- actions brought by an unsecured creditor against the debtor, also referred to as ‘action seeking a declaratory relief’,
- actions brought by secured creditors,
- actions concerning the return of property held by the debtor, and
- action brought by the reinstated debtor after the termination of insolvency proceedings.
CERIL explained that to overcome the existing level of uncertainty with time-consuming and costly disputes in civil proceedings, especially their characterisation as ‘annex action’, it encourages litigators and courts to use the reference work as set out in its report, which can be read here.
This content was first published by LNB News / Lexis®Library, a LexisNexis® company, on 19 April 2021 and is published with permission. Further information can be found at: www.lexisnexis.co.uk.
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