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Insolvency (Amendment) (EU Exit) Regulations 2018 - Motion to Approve

Part of the debate – in the House of Lords at 7:33 pm on 15th January 2019.

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Photo of Lord Henley Lord Henley Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy) 7:33 pm, 15th January 2019

My Lords, while we believe that a deal with the EU is in our mutual interest, it would not be appropriate to assume the outcome. It is therefore important that we also plan and provide, as the instrument before us does, for a no-deal outcome.

It may be helpful if I speak briefly about the current EU framework for cross-border insolvencies. The existing EU insolvency regulation ensures that member states automatically recognise an insolvency order made in an EU country, assisting the insolvency practitioner in recovering assets and returning money to creditors, avoiding unnecessary court proceedings, time and costs, and helping return more money to creditors, or rescuing a business, or saving employees’ jobs. The EU legislation contains safeguards to ensure that individual member states’ own laws are respected, and cannot be overridden by an insolvency order made in another state. I give way to the noble Lord.