The UK has opted in to the proposal for a regulation of the European Parliament and of the Council amending Council Regulation (EC) No. 1346/2000 on insolvency proceedings (“the existing regulation”).
The proposal meets the criteria set out in the coalition agreement with regard to EU justice and home affairs measures. In particular, the Government consider that it is in the UK’s interest to opt in to the proposal because it will be of general benefit to creditors and businesses in the UK and EU.
The decision to opt in was unanimously supported by stakeholders who responded to a call for evidence during February 2013. I intend to publish the responses received later today.
I believe the proposed amendments to the insolvency regulation will benefit UK businesses affected by insolvency in the EU. The proposals support business rescue by expanding the scope of the regulation to restructuring and pre-insolvency proceedings. Bankruptcy tourism will be tackled through new rules on determining jurisdiction and increased transparency for creditors. In addition, the proposals include new rules on publication of insolvency information via free online registers across the EU, in line with our digital by default strategy.
The Government will now participate fully in negotiations on the draft text of the amended regulation.