Paragraph 90 EU Regulation – undertakings and group proceedings etc.F1I1

After Rule 7.20A, insert—

“CHAPTER 2A

The EU Regulation

Main proceedings in Scotland: undertaking by office-holder in respect of assets in another member State (Article 36 of the EU Regulation)

7.20B.

(1)

This rule applies where an office-holder in main proceedings proposes to give an undertaking under Article 36 of the EU Regulation in respect of assets located in another member State.

(2)

The following requirements apply in respect of the proposed undertaking.

(3)

In addition to the requirements as to form and content set out in Article 36 the undertaking must contain—

(a)

the heading “Proposed Undertaking under Article 36 of the EU Insolvency Regulation (2015/848)”;

(b)

identification details for the company and for the main proceedings;

(c)

identification and contact details for the office-holder; and

(d)

a description of the effect of the undertaking if approved.

(4)

The proposed undertaking must be delivered to all the local creditors^f1 in the member State concerned of whose address the office-holder is aware.

(5)

Where the undertaking is rejected the office-holder must inform all the creditors of the company of the rejection of the undertaking as soon as reasonably practicable.

(6)

Where the undertaking is approved the office-holder must as soon as reasonably practicable—

(a)

send a copy of the undertaking to all the creditors with a notice informing them of the approval of the undertaking and of its effect (so far as they have not already been given this information under paragraph (3)(d));

(b)

where the insolvency proceedings relate to a registered company deliver a copy of the undertaking to the registrar of companies.

(7)

The office-holder may advertise details of the undertaking in the other member State in such manner as the office-holder thinks fit.

Main proceedings in another member State: approval of undertaking offered by the member State liquidator to local creditors in the UK

7.20C.

(1)

This rule applies where a member State liquidator proposes an undertaking under Article 36 and the secondary proceedings which the undertaking is intended to avoid would be insolvency proceedings to which these Rules apply.

(2)

A decision by the local creditors whether to approve the undertaking shall be taken as if it were a decision taken by a company’s creditors to approve a proposed company voluntary arrangement under section 4A of the Act^f2.

(3)

Without prejudice to the generality of paragraph (2), Rules 1.14 to 1.16E apply to that decision.

(4)

Where the main proceedings relate to a registered company the member State liquidator must deliver a copy of the approved undertaking to the registrar of companies.

Powers of an office-holder or member State liquidator in proceedings concerning members of a group of companies (Article 60 of the EU Regulation)

7.20D.

Where an office-holder or a member State liquidator makes an application in accordance with paragraph (1)(b) of Article 60 of the EU Regulation the application must state with reasons why the applicant thinks the matters set out in (i) to (iv) of that paragraph apply.

Group coordination proceedings (Section 2 of Chapter 5 of the EU Regulation)

7.20E.

(1)

An application to open group coordination proceedings must be headed “Application under Article 61 of Regulation (EU) 2015/848 to open group coordination proceedings” and must, in addition to the requirements in Article 61 contain—

(a)

identification and contact details for the office-holder making the application;

(b)

identification details for the company and the insolvency proceedings by virtue of which the office-holder is making the application;

(c)

identification details for the company and the insolvency proceedings in respect of each company which is a member of the group;

(d)

contact details for the office-holders and member State liquidators appointed in those proceedings;

(e)

identification details for any insolvency proceedings in respect of a member of the group which are not to be subject to the coordination because of an objection to being included; and

(f)

if relevant, a copy of any such agreement as is mentioned in Article 66 of the EU Regulation.

(2)

“office-holder” in this rule includes as the context requires a person holding office in insolvency proceedings in relation to the company in Scotland or Northern Ireland and a member State liquidator.

Group coordination order (Article 68 EU Regulation)

7.20F.

(1)

An order opening group coordination proceedings must also^f3 contain—

(a)

identification details for the insolvency proceedings by virtue of which the office-holder is making the application;

(b)

identification and contact details for the office-holder making the application;

(c)

identification details for the insolvency proceedings which are subject to the coordination; and

(d)

identification details for any insolvency proceedings for a member of the group which is not subject to the coordination because of an objection to being included.

(2)

The office-holder making the application must deliver a copy of the order to the coordinator and to any person who is, in respect of proceedings subject to the coordination,—

(a)

an office-holder,

(b)

a person holding office in insolvency proceedings in relation to the company in England and Wales or Northern Ireland, and

(c)

a member State liquidator.

Delivery of group coordination order to registrar of companies

7.20G.

An office-holder in respect of insolvency proceedings subject to coordination must deliver a copy of the group coordination order to the registrar of companies.

Office holder’s report

7.20H.

Where, under the second paragraph of Article 70(2) of the EU Regulation, an office-holder is required to give reasons for not following the coordinator’s recommendations or the group coordination plan those reasons must be given as soon as reasonably practicable by a notice to all the creditors.

Publication of opening of proceedings by a member State liquidator

7.20I.

(1)

This rule applies where—

(a)

a company subject to insolvency proceedings has an establishment in Scotland; and

(b)

a member State liquidator is required or authorised under Article 28 of the EU Regulation to publish a notice.

(2)

The notice must be published in the Edinburgh Gazette.

Statement by member State liquidator that insolvency proceedings in another member State are closed etc.

7.20J.

A statement by a member State liquidator under any of sections 201, 204, 205 or paragraph 84 of Schedule B1 informing the registrar of companies that the insolvency proceedings in another member State are closed or that the member State liquidator consents to the dissolution must contain—

(a)

identification details for the company; and

(b)

identification details for the member State liquidator.”.