Every commercial transaction involves some risks, including “non payment risk”. This “non-payment risk” exists in both local and international commercial transactions, and could be related to debtor’s insolvency. In those cases, it is highly possible that creditor and debtor, finally resort to an insolvency procedure.
Within the fold of the European Union, Council Regulation Of (CE) nº 1346/2000 on 29th of May of 2000 on Insolvency Procedures, establishes a common framework, for insolvency procedures, in the European Union. The aforementioned Regulation, has laid down the court having jurisdiction to hear about the main proceeding and the secondary proceeding and the applicable law. According to this Regulation, decisions made by the competent court for the main proceeding shall be immediately recognized by all EU countries.
In the international field, in the same vein and within the framework of the (UNCITRAL) UNITED NATIONS COMMISSION FOR INTERNATIONAL TRADE RIGHTS, The UNCITRAL Model Law on Cross-Border Insolvency dated of 30th of May of 1997, has as its main aim, authorizing and encouraging cooperation and coordination between jurisdictions, and not, promoting substantive law harmonization in terms of insolvency, respecting the dissimilarities between the different procedural laws of each country concerning this matter.
However, even inside the EU, the regulations in this matter, widely varies among different countries: some of them distinguish diverse insolvency proceedings, while others have an unique type of proceeding. In addition, terms, and obligations of debtors and creditors (especially when declaring receivables) differ in the distinct regulations.
In SANCHIS & PARTNERS, we advice all enterprises that could be affected by eventual situations of economical recession, independently if they are creditors or bankrupt or insolvent debtors. In order to this, in our firm we count on professionals largely experienced in this matter, both nationally and internationally.