Dr Enikõ Vida
by Dr Enikõ Vida
A case-by-case decision of the European Court of Justice was recently published which addressed how Article 3 (1) of the Insolvency Regulation 2015 (COMI) should be interpreted. The issue was: does the court of a member state (to which an application for the opening of main insolvency proceedings has been made) retain exclusive jurisdiction to open these proceedings if the centre of the debtor’s main interests has been transferred to another member state after that application was lodged, but before that court had made a decision on it.
According to the factual circumstances, the creditors of a holding company with its registered office in the United Kingdom lodged a request to open insolvency proceedings before the High Court. However, in the meantime, the centre of the main interest (COMI) of the holding company had moved to Germany and the creditors attempted to lodge another request to open insolvency proceedings before the German courts, while the High Court was yet to deliver a decision on the first request.
As a consequence, the Court did not depart from its previous practice, and confirmed that the court of a member state had jurisdiction (to which the request to open main insolvency proceedings had been submitted), even when the centre of the debtor’s main interests had moved to another member state after that request was filed, but before the first court had passed its decision about opening of the procedure.
Kovács Réti Szegheõ Attorneys at Law, established in 1992, is one of the oldest independent Hungarian law firms. It is active in Hungarian, English, German and Italian and operates over a wide spectrum within the fields of civil and business law, for both domestic and international clients. Kovács Réti Szegheő Attorneys-at-Law has gained immersive experience in the fields of corporate law, mergers and acquisitions, construction law, real estate law, securities law, bankruptcy law, labour and employment, competition law and intellectual property law.
Dr Enikő Vida graduated in 2006. She speaks Hungarian, English and German, and her primary areas of practice are bankruptcy and liquidation, enforcement law, labour law and litigation. Contact Enikő.
GGI member firmKovács Réti Szegheõ Attorneys at LawBudapest, HungaryT: +36 1 275 27 85
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