Preliminary advice on bankruptcy for companies trying to avoid corporate insolvency could fall under the scope of the Insolvency Regulation, following the news that the UK has opted in to the EU’s proposed Regulation on Insolvency Proceedings.
Jo Swinson, minister of state for employment relations and consumer affairs, and parliamentary undersecretary in the Department for Business, Innovation and Skills, announced the decision to opt in on April 15th.
She said: “The proposals support business rescue by expanding the scope of the Regulation to restructuring and pre-insolvency proceedings.
“Bankruptcy tourism will be tackled through new rules on determining jurisdiction and increased transparency for creditors.”
There are further measures included in the current proposals too – including plans to publish insolvency information online via free registries.
For those seeking advice on bankruptcy in the years to come, and for companies entering into corporate insolvency proceedings, the Insolvency Regulation should help to raise transparency and awareness of the options.
However, in the meantime, we will continue to provide the level of insolvency advice Manchester businesses need in order to make the right choices.