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8 Group Insolvencies

Reinhard Bork

From: European Cross-Border Insolvency Law (2nd Edition)

Reinhard Bork, Renato Mangano

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2022. All Rights Reserved.date: 27 November 2022

Subject(s):
Banks and cross-border issues — Bank resolution and insolvency

This chapter tackles European cross-border issues concerning group insolvencies. The EIR permits the roles of ‘one group — one COMI’, which delivers two different regulatory devices of procedural consolidation: duties of cooperation and communication, and a system of coordination. While the EIR covers the issues of insolvent companies belonging to a group of companies, the EIR also excludes any form of regulatory intervention which does not respect group members’’ separate legal entities. However, the exclusion does deliver a definition of a group of companies and various alternative regulatory devices allowing courts and insolvency practitioners to choose the regulation. Moreover, the EIR identifies a group of companies as control-based which either could be direct or indirect.

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