Reconsidering procedural consolidation for multinational corporate groups in the context of the recast European insolvency regulation

Journal article


Zhang, D. 2017. Reconsidering procedural consolidation for multinational corporate groups in the context of the recast European insolvency regulation. International Insolvency Review. 26 (3), pp. 241-357. https://doi.org/10.1002/iir.128610.1002/iir.1286
AuthorsZhang, D.
Abstract

Procedural consolidation, as a solution to the rescue of insolvent multinational corporate groups (‘MCGs’), is said to be able to preserve group value for creditors. This article explores the desirability of procedural consolidation in the EU in the light of theories of corporate rescue law, cross-border insolvency law, multinational enterprises and relevant EU cases with reference to the European Insolvency Regulation. It argues that, based on current cross-border insolvency rules in the EU, there is an inherent difficulty for procedural consolidation in balancing the goal of preservation of group value and the goal of certainty.

The article also considers the new ‘group procedural coordination proceedings’ offered by the Recast European Insolvency Regulation and argues that it may help to supplement the gap left by the procedural consolidation in the EU.

Year2017
JournalInternational Insolvency Review
Journal citation26 (3), pp. 241-357
PublisherJohn Wiley & Sons
ISSN1180-0518
Digital Object Identifier (DOI)https://doi.org/10.1002/iir.128610.1002/iir.1286
Publication dates
Print25 Aug 2017
Publication process dates
Deposited16 Jan 2018
Accepted author manuscript
Output statusPublished
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https://repository.canterbury.ac.uk/item/887x5/reconsidering-procedural-consolidation-for-multinational-corporate-groups-in-the-context-of-the-recast-european-insolvency-regulation

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