Strani pravni život (Jan 2018)
Cooperation in cross-border insolvency: The case of protocols
Abstract
The paper deals with cross-border insolvency protocols as special source of insolvency law. Protocols are agreements between parties in insolvency procedure that deal with many significant questions in order to establish cooperation and coordination between participants. Protocols are used in cross-border insolvency proceedings in order to overcome differences between state legislation that can pose major obstacle for maximization of the value or efficient reorganization procedure. This instrument has special significance in cases of cross-border-group-insolvencies. Namely, in this case every subsidiary is a separate entity, but the preservation of economic value of the group as a whole calls for cooperation between insolvency practitioners and/or judges. The topic is especially interesting having in mind that European Insolvency regulation Recast explicitly mentions the use of protocols as means of cooperation (Recital 49). This will most definitely have broader implications on insolvency laws of civil law countries and it will contribute to wider use of protocols in these countries.
