“Synthetic” insolvency proceedings

Among other things, this new text aims to limit the possibility of territorial insolvency proceedings under the premise that they are not always conducive to a better resolution of the insolvency proceedings as a whole. In this regard, art. 36 thereof provides that the insolvency practitioner (trustee in insolvency) in the main insolvency proceedings may give an undertaking, to local creditors in the Member State in which secondary insolvency proceedings could be opened, that it will comply with the distribution and priority rights that said creditors would have in respect of the assets located in the Member State in which said secondary insolvency proceedings could be opened (the relevant point in time for determining which are those assets shall be the moment at which the undertaking is made). For this purpose, a sub-category, in respect of the assets and rights located in the Member State where territorial insolvency proceedings could have been opened, is created in the insolvency proceedings with universal scope…