Preparation of Virtual Secondary Insolvency Proceedings Under the Recast EIR

Abstract

This paper analyses the issue of dealing with the new virtual secondary insolvency proceedings according to Article 36 EIR (recast). Currently, it appears the most urgent question for insolvency practitioners (IP) is the preparation of such virtual proceedings. As the undertaking requires comprehensive preparation, also in order to avoid personal liability pursuant to Article 36(10) EIR, the article outlines first steps for preparation. If these first steps fail, the undertaking does not even reach the next step: the proposal and approval. Hence, on the one hand the IP must take the preparation seriously; on the other hand, the court should grant appropriate time for the preparation if requested by the IP pursuant to Article 38(3) EIR mutatis mutandis.