Signe Viimsalu

The Meaning and Functioning of Secondary Insolvency Proceedings: the Concept of Secondary Insolvency Proceedings As an Exceptional Phenomenon Signe Viimsalu

The legal provisions applicable to all situations of cross-border insolvency are of very great practical importance, both to debtors and creditors alike, and at the same time they raise questions of considerable interest from the standpoint of legal theory and principle. The Council Regulation (EC) No 1346/2000, 29 May 2000 on Insolvency Proceedings (hereinafter: the EIR) aims to provide the EU-wide regulation of international jurisdiction, applicable law and recognition to enable efficient and effective operation of cross-border insolvency proceedings. In this book, the author has focused on the analysis of secondary insolvency proceedings opened after main insolvency proceedings. The concept of secondary insolvency proceedings is an exceptional phenomenon. The EIR does not establish any limit to the number of secondary insolvency proceedings which may be opened after main insolvency proceedings upon the establishment of an insolvent debtor within the meaning of Article 2 (h) of the EIR in the relevant Member State. However, the EIR is based on the principle of respect for substantive diversity that each Member State retains its own insolvency law.