CELEX: 52012PC0744
Language: en
Date: 2012-12-12
Title: Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Council Regulation (EC) No 1346/2000 on insolvency proceedings

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		52012PC0744
		
			Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Council Regulation (EC) No 1346/2000 on insolvency proceedings /* COM/2012/0744 final - 2012/0360 (COD) */
			
				
		
		
			
			   	EXPLANATORY MEMORANDUM
1.           CONTEXT OF THE PROPOSAL
1.1.        General context
This proposal is amending Council
Regulation (EC) No 1346/2000 of 29 May 2000 on insolvency proceedings (the
"Insolvency Regulation" or "Regulation"). 
The Insolvency Regulation establishes a
European framework for cross-border insolvency proceedings. The Regulation applies
whenever the debtor has assets or creditors in more than one Member State,
irrespective of whether he is a natural or legal person. The Regulation
determines which court has jurisdiction for opening insolvency proceedings:
Main proceedings have to be opened in the Member State where the debtor has its
centre of main interests (COMI) and the effects of these proceedings are
recognised EU-wide. Secondary proceedings can be opened where the debtor has an
establishment; the effects of these proceedings are limited to the assets
located in that State. The Regulation also contains rules on applicable law and
certain rules on the coordination of main and secondary insolvency proceedings.
The Insolvency Regulation applies to all Member States with the exception of
Denmark which does not participate in judicial cooperation under the Treaty on
the Functioning of the European Union. 
Adopted in May 2000,
the Insolvency Regulation applies since 31 May 2002. Ten years after its entry
into force, the Commission has reviewed its operation in practice and considers
it necessary to amend the instrument. 
1.2.        Need for a revision of the
Insolvency Regulation 
While the Insolvency
Regulation is generally considered to operate successfully in facilitating
cross-border insolvency proceedings within the European Union, the consultation
of stakeholders and legal and empirical studies commissioned by the Commission
revealed a range of problems in the application of the Regulation in practice.
Moreover, the Regulation does not sufficiently reflect current EU priorities
and national practices in insolvency law, in particular in promoting the rescue
of enterprises in difficulties. Essentially, the evaluation of the Insolvency
Regulation identified five main shortcomings:
·              
The Regulation's scope does not cover national
procedures which provide for the restructuring of a company at a pre-insolvency
stage (“pre-insolvency proceedings”) or proceedings which leave the existing
management in place (“hybrid proceedings”). However, such proceedings have
recently been introduced in many Member States[1]
and are considered to increase the chances of successful restructuring of
businesses. In addition, a number of personal insolvency proceedings are
currently outside the Regulation's scope. 
·              
There are difficulties in determining which
Member State is competent to open insolvency proceedings. While there is wide
support for granting jurisdiction for opening main insolvency proceedings to
the Member State where the debtor's COMI is located, there have been
difficulties in applying the concept in practice. The Regulation's jurisdiction
rules have also been criticised for allowing forum shopping by companies and
natural persons through abusive COMI-relocation.
·              
Problems have also been identified with respect
to secondary proceedings. The opening of secondary proceedings can hamper the
efficient administration of the debtor's estate. With the opening of secondary
proceedings, the liquidator in the main proceedings no longer has control over the
assets located in the other Member State which makes a sale of the debtor on a
going concern[2]
basis more difficult. Moreover, secondary proceedings currently have to be
winding-up proceedings which constitutes an obstacle to the successful restructuring
of a debtor. 
·              
There are problems relating to the rules on
publicity of insolvency proceedings and the lodging of claims. There is currently
no mandatory publication or registration of the decisions in the Member States
where a proceeding is opened, nor in Member States where there is an
establishment. There is also no European Insolvency Register which would permit
searches in several national registers. However, the good functioning of
cross-border insolvency proceedings relies to a significant extent on the
publicity of the relevant decisions relating to an insolvency procedure. Judges
need to be aware whether proceedings have already been opened in another Member
State; creditors or potential creditors need to be aware that proceedings have
commenced. In addition, creditors, particularly small creditors and SMEs, face
difficulties and costs in lodging claims under the Insolvency Regulation.
·              
Finally, the Regulation does not contain specific
rules dealing with the insolvency of a multi-national enterprise group although
a large number of cross-border insolvencies involve groups of companies. The
basic premise of the Insolvency Regulation is that separate proceedings must be
opened for each individual member of the group and that these proceedings are
entirely independent of each other. The lack of specific provisions for group
insolvency often diminishes the prospects of successful restructuring of the
group as a whole and may lead to a break-up of the group in its constituting
parts. 
The detailed evaluation of the Regulation's
application in practice is set out in the Commission's report which accompanies
this proposal. An in-depth analysis of the problems of the current Regulation
as well as the impacts of the different options considered for addressing them
can be found in the Commission's Impact Assessment which equally accompanies
this proposal. 
The overall objective of the revision of
the Insolvency Regulation is to improve the efficiency of the European
framework for resolving cross-border insolvency cases in view of ensuring a
smooth functioning of the internal market and its resilience in economic
crises. This objective links in with the EU's current political priorities to
promote economic recovery and sustainable growth, a higher investment rate and
the preservation of employment, as set out in the Europe 2020 strategy. The revision
of the Regulation will contribute to ensuring a smooth development and the
survival of businesses, as stated in the Small Business Act[3]. The revision is also one of
the key actions listed in the Single Market Act II[4]. 
2.           CONSULTATION AND IMPACT ASSESSMENT
This proposal was preceded by a
consultation of the interested public, Member States, other institutions and
experts on the existing problems of the current Regulation and possible
solutions to these problems. On 29 March 2012, the Commission launched a public
consultation to which a total of 134 answers were received. The Commission also
took into account the results of an external study for the evaluation of the
application of the Insolvency Regulation carried out by
a consortium of the Universities of Heidelberg and Vienna. Empirical data on
the impact of the different options for reform were collected by another
external study carried out by a consortium of GHK and Milieu. Both studies will
be published together with this proposal on the internet site of DG JUSTICE.
Two meetings with national experts were held in April and October 2012. In
addition, the Commission set up a group of private experts in the field of
cross-border insolvencies which met five times from May to October 2012 and
provided input on the problems, the options and the drafting of the revised
Regulation.
Views of stakeholders on the main elements
of the reform can be summarised as follows: 
·              
With respect to the extension of the scope of
the Regulation, a significant majority felt that the Regulation should cover pre-insolvency
and hybrid proceedings. Views were mixed on exactly which proceedings should be
covered and, in particular, where court oversight should be required. A
majority of respondents agreed that the Insolvency Regulation should apply to
private individuals and self-employed. 
·              
With respect to jurisdiction, three quarters of
respondents approved of the use of the COMI concept to locate the main
proceedings. However a majority considered that the interpretation of the term
COMI by case-law caused practical problems. Almost half of the respondents
indicated evidence of abusive relocation of COMI[5].

·              
As to the relation of main and secondary
insolvency proceedings, almost half of the respondents were dissatisfied with
the coordination between main and secondary proceedings.
·              
With respect to publication of proceedings,
three quarters of respondents agreed that the absence of mandatory publication
of the decision opening insolvency is a problem. Almost half of those who
expressed an opinion considered there were problems with lodging claims. 
·              
Concerning group insolvency, almost half of
respondents felt the EIR does not work efficiently for the insolvency of
members of a multinational group of companies. 
The Commission analysed the costs and
benefits of the main aspects of the proposed reform in its Impact Assessment
which accompanies this proposal. 
3.           LEGAL ELEMENTS OF THE PROPOSAL
3.1.        Summary of the proposed action

 The elements of the proposed reform of the Insolvency Regulation can be summarised as follows: ·               Scope: The proposal extends the scope of the Regulation by revising the definition of insolvency proceedings to include hybrid and pre-insolvency proceedings as well as debt discharge proceedings and other insolvency proceedings for natural persons which currently do not fit the definition; 
 ·               Jurisdiction: The proposal clarifies the jurisdiction rules and improves the procedural framework for determining jurisdiction; 
 ·               Secondary proceedings: the proposal provides for a more efficient administration of insolvency proceedings by enabling the court to refuse the opening of secondary proceedings if this is not necessary to protect the interests of local creditors, by abolishing the requirement that secondary proceedings must be winding-up proceedings and by improving the cooperation between main and secondary proceedings, in particular by extending the cooperation requirements to the courts involved; ·               Publicity of proceedings and lodging of claims: The proposal requires Member States to publish the relevant court decisions in cross-border insolvency cases in a publicly accessible electronic register and provides for the interconnection of national insolvency registers. It also introduces standard forms for the lodging of claims; 
 ·               Groups of companies: The proposal provides for a coordination of the insolvency proceedings concerning different members of the same group of companies by obliging the liquidators and courts involved in the different main proceedings to cooperate and communicate with each other; in addition, it gives the liquidators involved in such proceedings the procedural tools to request a stay of the respective other proceedings and to propose a rescue plan for the members of the group subject to insolvency proceedings. 
3.1.1.     Scope of the Insolvency
Regulation
The proposal extends
the scope of the Insolvency Regulation by amending the current definition of
"insolvency proceedings" in its Article 1 (1). In this respect, it is
proposed to open the scope to proceedings which do not involve a liquidator but
in which the assets and affairs of the debtor are subject to control or
supervision by a court. This amendment would allow proceedings where the debtor
remains in possession without a liquidator being appointed to benefit from the
EU-wide recognition of the effects of insolvency proceedings which the
Regulation brings about. It would also allow more personal insolvency
procedures to be covered by the Regulation. In addition, it is proposed to make
an express reference to proceedings for the adjustment of debts and to the
purpose of rescue in order to include also those proceedings which enable the
debtor to find an arrangement with his creditors at a pre-insolvency stage. The
amendments would also bring the Regulation more in line with the approach taken
by the UNCITRAL Model Law on cross-border insolvency[6]. 
While the extension of
the Regulation's scope is important to ensure the efficient conduct of
pre-insolvency and hybrid proceedings in a cross-border context, it should not
encompass insolvency proceedings which are confidential. There are indeed a
number of national pre-insolvency proceedings where the debtor enters into
negotiations with (certain) creditors in view of reaching an agreement on its
refinancing or reorganisation but this information is not made public. These
proceedings may entail a moratorium of individual enforcement proceedings or
prevent creditors from filing for insolvency proceedings during a certain time
period in order to give the debtor some "breathing space". While
these proceedings may play an important role in some Member States, their contractual
and confidential nature would make it difficult to recognise their effects
EU-wide because a court or creditor located in another Member State would not
know that such proceedings are pending. This does, however, not prevent such a procedure
from being subsequently covered by the scope of the Insolvency Regulation as
from the moment it becomes public. 
This proposal does not
envisage changing the existing mechanism according to which the national
insolvency procedures covered by the Regulation are listed in Annex A and the Member
States decide whether to notify a particular insolvency procedure to be
included in that Annex. However, the proposal introduces a procedure by which
the Commission scrutinises whether a national insolvency procedure notified
actually fulfils the conditions of the revised definition. This will ensure
that only proceedings which fit the rules of the Regulation are listed in the
Annex. 
3.1.2.     Jurisdiction for opening
insolvency proceedings
The proposal retains the concept of the
centre of main interest (COMI) because that concept ensures
that the case will be handled in a jurisdiction with which the debtor has a
genuine connection rather than in the one chosen by the incorporators. The COMI
approach is also in line with international developments since it has been chosen
as a jurisdictional standard by UNCITRAL in its Model Law on cross-border
insolvency. In order to give guidance to legal practitioners in determining
COMI, the proposal complements the definition of COMI; it also introduces a
provision determining the COMI of natural persons. In addition, a new recital
clarifies the circumstances in which the presumption that the COMI of a legal
person is located at the place of its registered office can be rebutted; the
language of this recital is taken from the "Interedil" decision of
the Court of Justice of the European Union[7].

The proposal also improves the procedural
framework for determining jurisdiction for the opening of proceedings. The
proposal requires the court to examine its jurisdiction ex officio prior to
opening insolvency proceedings and to specify in its decision on which grounds
it based its jurisdiction. Furthermore, the proposal grants all foreign
creditors a right to challenge the opening decision and ensures that these creditors
are informed of the opening decision in order to be able to effectively
exercise their rights. These changes aim at ensuring that proceedings are only
opened if the Member State concerned actually has jurisdiction. It should
therefore reduce the cases of forum shopping through abusive and non-genuine
relocation of the COMI. 
Thirdly, the proposal clarifies that the
courts opening insolvency proceedings also have jurisdiction for actions which
derive directly from insolvency proceedings or are closely linked with them
such as avoidance actions. This amendment codifies the case-law of the CJEU in
the "DekoMarty" decision[8].
Where such an action is related to another action against the same defendant
which is based on general civil and commercial law, the proposal gives the
liquidator the possibility to bring both actions in the courts of the
defendant's domicile if these courts are competent pursuant to Regulation (EC)
44/2001 of 22 December 2000 on jurisdiction and the recognition and enforcement
of judgments in civil and commercial matters[9]
(as amended). This rule would allow a liquidator to bring, for example, an
action for directors' liability based on insolvency law together with an action
against that director based on tort law or company law in the same court. 
3.1.3.     Secondary insolvency
proceedings
Several modifications are proposed with the
aim of improving the efficient administration of the debtor's estate in
situations where the debtor has an establishment in another Member State. 
·              
The court seised with a request for opening
secondary proceedings should be able, if so requested by the liquidator in the
main proceedings, to refuse the opening or to postpone the decision if such
opening would not be necessary to protect the interests of local creditors.
This could, for example, be the case if an investor made an offer to buy the
company on a going-concern basis and that offer would give more to the local
creditors than a liquidation of the company's assets. The opening of secondary proceedings
should also not be necessary, if the liquidator of the main proceedings
promises to the local creditors that they would be treated in the main
proceedings as if secondary proceedings had been opened and that the rights
they would have had in such a case with respect to the determination and
ranking of their claims would be respected in the distribution of the assets.
The practice of such "synthetic secondary proceedings" has been
developed in several cross-border insolvency cases where main proceedings were
opened in the United Kingdom (notably in the insolvency proceedings concerning Collins&Aikman,
MG Rover and Nortel Networks). The English courts accepted that the English
liquidators were entitled to distribute part of the assets according to the law
of the Member State where the establishment was located. Since such a practice
is currently not possible under the law of many Member States, the proposal
introduces a rule of substantive law enabling the liquidator to give such
undertakings to local creditors with binding effect on the estate. 
·              
The proposed amendment will not affect the
possibility of the liquidator to request the opening of secondary proceedings
where this would facilitate the administration of complex cases, for example
where a considerable number of employees have to be laid off in the State of
the establishment. In such cases, the opening of local proceedings and the
appointment of a local liquidator may still be useful to ensure an efficient
administration of the debtor's estate. 
·              
The proposal obliges the court seised with a
request to open secondary proceedings to hear the liquidator of the main
proceedings prior to taking its decision. This amendment aims to ensure that
the court seised with a request for opening secondary proceedings is fully
aware of any rescue or reorganisation options explored by the liquidator and is
able to properly assess the consequences of the opening of secondary
proceedings. This obligation is complemented by the right of the liquidator to
challenge the decision opening secondary proceedings. 
·              
The proposal abolishes the current requirement
that secondary proceedings have to be winding-up proceedings. Where secondary
proceedings are opened, the opening court can choose from the full range of
proceedings available under national law including restructuring. This
amendment ensures that the opening of secondary proceedings does not
automatically thwart the rescue or restructuring of a debtor as a whole. This
amendment should be without prejudice to the rules on the recovery of state aid
and the jurisprudence of the Court of Justice of the European Union on recovery
from insolvent companies[10].
·              
In addition, the proposal improves the
coordination of main and secondary proceedings by extending the obligation to
cooperate, which currently only applies to the liquidators, to the courts
involved in the main and secondary proceedings. Consequently, courts will be
obliged to cooperate and communicate with each other; moreover, liquidators
will have to cooperate and communicate with the court in the other Member State
involved in the proceedings. Cooperation between courts will improve the
coordination of main and secondary proceedings. It can notably be crucial to
ensure a successful restructuring, e.g. concerning the approval of a protocol
setting out a rescue plan.
3.1.4.     Publicity of insolvency proceedings
and lodging of claims
The proposal provides that certain minimum
information relating to the insolvency proceedings have to be published in an
electronic register available to the public free of charge via the internet.
This obligation concerns the court opening the insolvency proceedings, the date
of opening and – for main proceedings, the date of closing proceedings, the
type of proceedings, the debtor, the liquidator appointed, the decision opening
proceedings as well as the decision appointing the liquidator, if different,
and the deadline for lodging claims. In light of the disparities in national
legal systems as to the publication of insolvency proceedings and the different
needs of creditors, the obligation to publish this information is limited to
companies, self-employed and independent professionals; it does not extend to
insolvency proceedings relating to consumers. The proposal provides for the
establishment of a system for the interconnection of national registers which
will be accessed via the European e-justice portal. The Commission will
determine minimum common criteria for searching the registers and for obtaining
results which will be based on the information to be published in the
insolvency registers by way of implementing act. The interconnection of
national registers will ensure that a court seised with a request for opening
insolvency proceedings will be able to determine whether proceedings relating
to the same debtor have already been opened in another Member State; it will
also enable creditors to find out whether proceedings have been opened
concerning the same debtor and, if so, which powers the liquidator has, if any.
For debtors which are companies, Member States will be able to build on the
obligations arising from Directive 2012/17/EU of 13 June 2012 on the
interconnection of central, commercial and companies registers[11]. However, for the purpose of
this Regulation, the mere information that proceedings have been opened
concerning a debtor is insufficient for the purpose of coordinating
cross-border insolvency proceedings and enabling creditors to make use of their
rights in relation to such proceedings.
The proposal facilitates the lodging of
claims for foreign creditors, particularly small creditors and SMEs, in three
ways: First, it provides for two standard forms to be introduced by way of
implementing act, one for the notice to be sent to creditors and the other for
the lodging of claims. These standard forms will be available in all official
languages of the European Union, thereby reducing translation costs. Second,
the proposal gives foreign creditors at least 45 days following publication of
the notice of opening of proceedings in the insolvency register to lodge their
claims, irrespective of any shorter periods applicable under national law. They
will also have to be informed in case their claim is contested and be given the
possibility to supplement the evidence provided in order to prove their claim.
Finally, legal representation will not be mandatory for lodging a claim in a
foreign jurisdiction, thereby reducing costs for creditors. 
3.1.5.     Insolvency of members of a
group of companies
The proposal creates a specific legal
framework to deal with the insolvency of members of a group of companies while
maintaining the entity-by-entity approach which underlies the current
Insolvency Regulation. The proposal introduces an obligation to coordinate
insolvency proceedings relating to different members of the same group of
companies by obliging the liquidators and the courts involved to cooperate with
each other in a similar way as this is proposed in the context of main and
secondary proceedings. Such cooperation could take different forms depending on
the circumstances of the case. Liquidators should notably exchange relevant
information and cooperate in the elaboration of a rescue or reorganisation plan
where this is appropriate. The possibility to cooperate by way of protocols is
explicitly mentioned in order to acknowledge the practical importance of these
instruments and further promote their use. Courts should cooperate, in
particular, by exchanging information, coordinating, where appropriate, the
appointment of liquidators which can cooperate with each other, and approving
protocols put before them by the liquidators. 
In addition, the proposal gives each
liquidator standing in the proceedings concerning another member of the same
group. In particular, the liquidator has a right to be heard in these other
proceedings, to request a stay of the other proceedings and to propose a
reorganisation plan in a way which would enable the respective creditors'
committee or court to take a decision on it. The liquidator also has the right
to attend the meeting of creditors. These procedural tools enable the
liquidator which has the biggest interest in the successful restructuring of
all companies concerned to officially submit his reorganisation plan in the
proceedings concerning a group member, even if the liquidator in these
proceedings is unwilling to cooperate or is opposed to the plan.
In providing for the coordination of
different proceedings relating to members of the same group, the proposal does
not intend to prevent the existing practice in relation to highly integrated
groups of companies to determine that the centre of main interests of all
members of the group is located in one and the same place and, consequently, to
open proceedings only in a single jurisdiction. 
3.2.        Legal Basis
This proposal amends Regulation 1346/2000
which was based on Articles 61 (c) and 67 (1) of the Treaty establishing the
European Community. Since the entry into force of the Treaty of Lisbon, the
corresponding legal basis is Article 81 (2) (a), (c) and (f) of the Treaty on
the Functioning of the European Union. 
Title V of Part Three of the Treaty on the
Functioning of the European Union is not applicable to Denmark by reason of the
Protocol on the position of Denmark annexed to the Treaties. Title V is also
not applicable to the United Kingdom and Ireland, unless those two countries
decide otherwise, in accordance with the relevant rules of the Protocol on
their position in respect of the area of Freedom, Security and Justice.
However, where a Commission proposal amends an existing act and the United
Kingdom or Ireland do not exercise their right to opt into the amending
measure, the Council, acting on a proposal from the Commission, can determine
that the non-participation of the respective country in the amended version of
the existing measure makes the application of that measure inoperable for other
Member States or the Union, in which case the period for making the
notification is extended. If the respective country has not opted in at the
expiry of the extended period, the existing measure shall no longer be binding
upon or applicable to it. 
3.3.        Subsidiarity and
Proportionality
The different elements of the revision of
the Insolvency Regulation outlined above comply with the requirements of
subsidiarity and proportionality. As to subsidiarity, the proposed amendments
cannot be achieved by the Member States alone because they require the
modification of existing rules of the Insolvency Regulation relating to scope,
jurisdiction for opening insolvency proceedings, provisions concerning
secondary proceedings, publication of decisions and the lodging of claims. The
modification of the Insolvency Regulation requires – by definition – the
intervention of the Union legislator. While the creation of electronic insolvency
registers could in theory be achieved by the Member States alone, the
interconnection of such registers requires action at Union level. Therefore,
the objectives of the proposed action – to enable the interconnection of
insolvency registers EU-wide – cannot sufficiently be achieved by the Member
States alone but can be better achieved by action at Union level. 
As to proportionality, the content and form
of the proposed action does not exceed what is necessary to achieve the
objectives of the Treaty. Moreover, the Impact Assessment attached to this
proposal demonstrates that the benefits of each of the proposed amendments
outweigh their costs and that they are therefore proportionate. 
3.4.        Impact on fundamental
rights
As set out in detail in the Impact Assessment
accompanying this proposal and in accordance with the Union's strategy for the
effective implementation of the Charter of Fundamental Rights of the European
Union, all elements of the reform respect the rights set out in the Charter of
fundamental Rights. The amendments improve the situation
of persons involved in cross-border insolvencies with respect to their right to
property, the freedom to conduct business and the right to engage in work, the freedom
of movement and residence, and the right to an effective remedy. The proposed
amendment to create publicly accessible electronic insolvency registers
respects the right of protection of personal data in a way which is
proportionate to the objectives because measures will be put in place to ensure
compliance with Directive 95/46/EC on data protection.
4.           BUDGETARY IMPLICATION 
The proposal would have limited impact on
the EU budget. The IT application for the interconnection of the insolvency
registers has already been developed and will be hosted on the e-Justice
Portal. The implication on the EU budget over 2014-2020 will comprise only of
hosting and maintenance costs of the IT application. In total these costs would
amount to EUR 1 500 000  for the period 2014-2020 and would be covered by the
financial envelope of the future  Justice programme[12]. 
2012/0360 (COD)
Proposal for a
REGULATION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL
amending Council Regulation (EC) No
1346/2000 on insolvency proceedings
THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 81 thereof,
Having regard to the proposal from the
European Commission,
After transmission of the draft legislative
act to the national Parliaments,
Having regard to the opinion of the
European Economic and Social Committee[13],

Acting in accordance with the ordinary
legislative procedure,
After consulting the European Data
Protection Supervisor[14],
Whereas:
(1)       Council Regulation (EC) No
1346/2000[15]
established a European framework for cross-border insolvency proceedings. It
determines which Member State has jurisdiction for opening insolvency
proceedings, establishes uniform rules on applicable law and provides for the
recognition and enforcement of insolvency-related decisions as well as for the
coordination of main and secondary insolvency proceedings. 
(2)       The Commission's report on
the application of Regulation (EC) No 1346/2000 of 12 December 2012[16] concludes that the Regulation
is functioning well in general but that it is desirable to improve the
application of certain of its provisions in order to enhance the effective
administration of cross-border insolvency proceedings.
(3)       The scope of Regulation (EC)
No 1346/2000 should be extended to proceedings which promote the rescue of an
economically viable debtor in order to help sound companies to survive and give
a second chance to entrepreneurs. It should notably extend to proceedings which
provide for the restructuring of a debtor at a pre-insolvency stage or which leave
the existing management in place. The Regulation should also cover those proceedings
providing for a debt discharge of consumers and self-employed persons which do
not fulfil the criteria of the current instrument.
(4)       The rules on jurisdiction for
opening insolvency proceedings should be clarified and the procedural framework
for determining jurisdiction should be improved. There should also be an
explicit rule on jurisdiction for actions which are deriving directly from
insolvency proceedings or are closely linked with them. 
(5)       In order to improve the
effectiveness of the insolvency proceedings in cases where the debtor has an
establishment in another Member State, the requirement that secondary
proceedings must be winding-up proceedings should be abolished. Moreover, a
court should be able to refuse the opening of secondary proceedings if this is
not necessary to protect the interests of local creditors. The coordination
between main and secondary proceedings should be improved, in particular by requiring
the courts involved to cooperate. 
(6)       In order to improve the
information available to creditors and courts involved and to prevent the
opening of parallel insolvency proceedings, Member States should be required to
publish relevant decisions in cross-border insolvency cases in a publicly
accessible electronic register. Provision should be made for the
interconnection of insolvency registers. Standard forms for the lodging of
claims to facilitate the tasks of foreign creditors and reduce translation
costs should be introduced.
(7)       There should be specific
rules dealing with the coordination of proceedings involving different members
of the same group of companies. The liquidators and courts involved in the
different insolvency proceedings should be obliged to cooperate and communicate
with each other. In addition, any of the liquidators involved should have the
procedural tools to propose a rescue plan for the group companies subject to
insolvency proceedings and to request, where necessary, a stay of the
insolvency proceedings concerning a company other than the one for which they
were appointed. The definition of the term "group of companies"
should be understood as being limited to the context of insolvency and should
not have any influence on the company aspects regarding groups.
(8)       In
order to enable a swift adaptation of the Regulation to relevant amendments of
the domestic insolvency law which the Member States have notified, the power to
adopt acts in accordance with Article 290 of the Treaty should be delegated to
the Commission in respect of the amendment of the Annexes. It is of particular
importance that the Commission carry out appropriate consultations during its
preparatory work, including at expert level. The Commission, when preparing and
drawing up delegated acts, should ensure a simultaneous, timely and appropriate
transmission of relevant documents to the European Parliament and to the
Council.
(9)       In
order to ensure uniform conditions for the implementation of Regulation (EC) No
1346/2000, implementing powers should be conferred on the Commission. Those
powers should be exercised in accordance with Regulation (EU) No 182/2011 of
the European Parliament and of the Council of 16 February 2011 laying down the
rules and general principles concerning mechanisms for control by the Member
States of the Commission's exercise of implementing powers[17].
(10)     Regulation
(EC) No 1346/2000 should therefore be amended accordingly.
(11)     The
amendment of this Regulation should be without prejudice to the rules on the
recovery of State aid from insolvent companies as interpreted by the case-law
of the Court of Justice of the European Union (C-454/09 Commission v. Italy –
'New Interline'). Where the full recovery of the amount of state aid is not
possible because the recovery order concerns a company in insolvency
proceedings, those proceedings should always be winding-up proceedings and lead
to the definitive cessation of the beneficiary's activities and the liquidation
of its assets.
(12)     In
accordance with Article 1 and 2 of the Protocol on the position of the United
Kingdom and Ireland in respect of the area of freedom, security and justice annexed
to the Treaty on European Union and the Treaty on the Functioning of the
European Union, [the United Kingdom and Ireland have given notice of their wish
to take part in the adoption and application of this Regulation]/[without
prejudice to Article 4 of the Protocol, the United Kingdom and Ireland will not
participate in the adoption of this Regulation and will not be bound by it or
be subject to its application].
(13)     Denmark,
in accordance with Articles 1 and 2 of the Protocol on the position of Denmark
annexed to the Treaty on European Union and the Treaty on the Functioning of
the European Union, is not participating in the adoption of this Regulation,
and is therefore not bound by it nor subject to its application.
HAVE ADOPTED THIS REGULATION:
Article 1
Council Regulation (EC) No 1346/2000 is amended
as follows:
(1)                   
In Recital 2, the reference to Article 65 is
replaced by a reference to Article 81.
(2)                   
In Recitals 3, 5, 8, 11, 12, 14 and 21, the term
"Community" is replaced by "Union".
(3)                   
Recital 4 is replaced by the following: 
"(4)    It is
necessary for the proper functioning of the internal market to avoid incentives
for the parties to transfer assets or judicial proceedings from one Member
State to another, seeking to obtain a more favourable legal position to the
detriment of the general body of creditors (forum shopping)."
(4)                   
Recital 6 is replaced by the following:
"(6)    This Regulation should encompass
provisions governing jurisdiction for opening insolvency proceedings and
proceedings which are deriving directly from the insolvency proceedings and are
closely connected with them. This Regulation should also contain provisions
regarding the recognition and enforcement of judgments issued in such
proceedings and provisions regarding the law applicable to insolvency
proceedings. In addition, this Regulation should contain rules on the
coordination of insolvency proceedings which relate to the same debtor or to
several members of the same group of companies." 
(5)                   
Recital 7 is replaced by the following:
"(7)    Proceedings concerning the
winding-up of insolvent companies or other legal persons, judicial arrangements,
compositions and analogous proceedings and actions related to such proceedings
are excluded from the scope of Council Regulation (EC)
No 44/2001 of 22 December 2000 on jurisdiction and the recognition and
enforcement of judgments in civil and commercial matters[18]. These
proceedings should be covered by the present Regulation. The interpretation of
this Regulation should as much as possible avoid regulatory loopholes between
the two instruments." 
(6)                   
Recital 9 is replaced by the following:
"(9)    This Regulation should apply to
insolvency proceedings which fulfill the conditions set out in this Regulation,
irrespective of whether the debtor is a natural person or a legal person, a
trader or an individual. Those insolvency proceedings are listed exhaustively in
Annex A. When a national procedure figures in Annex A, this Regulation should apply
without any further examination by the courts of another Member State regarding
whether the conditions set out in this Regulation are fulfilled. Insolvency
proceedings concerning insurance undertakings, credit institutions, investment
firms to the extent these are covered by Directive 2001/24/EC of the European
Parliament and of the Council of 4 April 2001 on the reorganisation and
winding-up of credit institutions[19]
(as amended) and collective investment undertakings should be excluded from the
scope of this Regulation. Such undertakings should not be covered by this
Regulation since they are subject to special arrangements and the national
supervisory authorities have wide-ranging powers of intervention."
(7)                   
The following recital 9a is inserted:
"(9a)  The scope of
this Regulation should extend to proceedings which promote the rescue of an
economically viable debtor in order to help sound businesses to survive and
give a second chance to entrepreneurs. It should notably extend to proceedings which
provide for the restructuring of a debtor at a pre-insolvency stage,
proceedings which leave the existing management in place and proceedings
providing for a debt discharge of consumers and self-employed persons. Since these proceedings do not necessarily
entail the appointment of a liquidator, they should be covered by this
Regulation if they take place under the control or supervision of a court. In
this context, the term "control" should include situations where the
court only intervenes on appeal by a creditor or interested party."
(8)                   
Recital 10 is replaced by the following: 
"(10)  Insolvency proceedings do not
necessarily involve the intervention of a judicial authority; the expression 'court'
in this Regulation should be given a broad meaning and include a person or body
empowered by national law to open insolvency proceedings. In order for this
Regulation to apply, proceedings (comprising acts and formalities set down in
law) should not only have to comply with the provisions of this Regulation, but
they should also be officially recognised and legally effective in the Member
State in which the insolvency proceedings are opened."
(9)                   
A new recital 12a is inserted:
(12a) Before opening insolvency proceedings, the
competent court should examine ex officio whether the debtor's centre of main
interests or establishment is actually located within its jurisdiction. Where
the circumstances of the case give rise to doubts about the court's jurisdiction,
the court should require the debtor to submit additional evidence to support
his assertions and, where appropriate, give the debtor's creditors the
opportunity to present their views on the question of jurisdiction. In
addition, creditors should have an effective remedy against the decision
opening insolvency proceedings.
(10)               
Recital 13 is deleted.
(11)               
The following recitals 13a and 13b are inserted:
(13a) The 'centre of main interests' of a company
or other legal person should be presumed to be at the place of its registered
office. It should be possible to rebut this presumption if the company's
central administration is located in another Member State than its registered
office and a comprehensive assessment of all the relevant
factors establishes, in a manner that is ascertainable by third parties, that
the company’s actual centre of management and supervision and of the management
of its interests is located in that other Member State.
By contrast, it should not be possible to rebut the
presumption where the bodies responsible for the management and supervision of
a company are in the same place as its registered office and the management decisions
are taken there in a manner ascertainable by third parties.
(13b) The courts of the Member State opening insolvency
proceedings should also have jurisdiction for actions which derive directly from the insolvency proceedings and are closely
linked with them, such as avoidance actions. Where such an action is related
with another action based on general civil and commercial law, the liquidator
should be able to bring both actions in the courts of the defendant's domicile
if he considers it more efficient to bring the action in that forum. This
could, for example, be the case if the liquidator wishes to combine an action
for director's liability on the basis of insolvency law with an action based on
company law or general tort law.
(12)               
The following recitals 19a and 19b are inserted:
(19a) Secondary proceedings may also hamper the
efficient administration of the estate. Therefore, the court opening secondary
proceedings should be able, on request of the liquidator, to postpone or refuse
the opening if these proceedings are not necessary to protect the interests of
local creditors. This should notably be the case if the liquidator, by an
undertaking binding on the estate, agrees to treat local creditors as if
secondary proceedings had been opened and to apply the rules of ranking of the
Member State where the opening of secondary proceedings has been requested when
distributing the assets located in that Member State. This Regulation should
confer on the liquidator the possibility to give such undertakings.
(19b) In order to ensure an effective protection
of local interests, the liquidator of the main proceedings should not be able
to realise or re-locate the assets situated in the Member State where an
establishment is located in an abusive manner, in particular, with the purpose
of frustrating the possibility that such interests be effectively satisfied if
afterwards secondary proceedings were opened.
(13)               
Recital 20 is replaced by the following:
"(20)  Main insolvency proceedings and
secondary proceedings can only contribute to the effective realisation of the
total assets if all the concurrent proceedings pending are coordinated. The
main condition here is that the various liquidators and the courts involved
must cooperate closely, in particular by exchanging a sufficient amount of
information. In order to ensure the dominant role of the main proceedings, the
liquidator in such proceedings should be given several possibilities for
intervening in secondary insolvency proceedings which are pending at the same
time. In particular, the liquidator should be able to propose a restructuring
plan or composition or apply for a suspension of the realisation of the assets
in the secondary insolvency proceedings. In their cooperation, liquidators and
courts should take into account best practices for cooperation in cross-border
insolvency cases as set out in principles and guidelines on communication and
cooperation adopted by European and international associations active in the
area of insolvency law."
(14)               
The following recitals 20a and 20b are inserted:
(20a) This Regulation should ensure the efficient
administration of insolvency proceedings relating to different companies forming
part of a group of companies. Where insolvency proceedings have been opened for
several companies of the same group, these proceedings should be properly
coordinated. The various liquidators and the courts involved should therefore
be under the same obligation to cooperate and communicate with each other as
those involved in main and secondary proceedings relating to the same debtor.
In addition, a liquidator appointed in proceedings relating to a member of a
group of companies should have standing to propose a rescue plan in the
proceedings concerning another member of the same group to the extent such a
tool is available under national insolvency law.
(20b) The introduction of rules on the insolvency
of groups of companies should not limit the possibility of a court to open
insolvency proceedings for several companies belonging to the same group in a
single jurisdiction if the court finds that the centre of main interests of these
companies is located in a single Member State. In such situations, the court
should also be able to appoint, if appropriate, the same liquidator in all
proceedings concerned.
(15)               
A new Recital 21a is inserted:
(21a) It is essential that creditors who have
their habitual residence, domicile or registered office in the Union be
informed about the opening of insolvency proceedings relating to their debtor's
assets. In order to ensure a swift transmission of information to creditors, Regulation 1393/2007 of the European Parliament and of the Council
of 13 November 2007 on the on the service in the Member States of judicial and
extrajudicial documents in civil and commercial matters[20] should not apply where this
Regulation refers to the obligation to inform creditors. The
use of standard forms available in all official languages of the Union should
facilitate the task of creditors when lodging claims in proceedings opened in
another Member State."
(16)               
Recital 29 is replaced by the following: 
"(29)  For business considerations, the main
content of the decision opening the proceedings should be published in another
Member State at the request of the liquidator. If there is an establishment in
the Member State concerned, such publication should be mandatory until such
time as the system of interconnection of insolvency registers is established.
In neither case, however, should publication be a prior condition for
recognition of the foreign proceedings." 
(17)               
The following recital 29a is inserted:
(29a) In order to improve
the information of creditors and courts involved and to prevent the opening of
parallel insolvency proceedings, Member States should be required to publish
relevant information in cross-border insolvency cases in a publicly accessible
electronic register. In order to facilitate access to that information for
creditors and courts domiciled or located in other Member States, this
Regulation should provide for the interconnection of insolvency registers.
(18)               
Recital 31 is replaced by the following:
"(31)  This Regulation should include
Annexes specifying, in particular, the national insolvency proceedings which
are covered by this Regulation. In order to enable a swift adaptation of the
Regulation to relevant amendments of the domestic insolvency law of the Member
States, the Commission should be empowered to adopt amendments to the annexes
by way of delegated acts in accordance with Article 290 of the Treaty on the
Functioning of the European Union. Before adopting a delegated act amending the
list of national proceedings in the Annexes, the Commission should verify
whether the procedure notified fulfills the criteria set out in this
Regulation. When preparing and drawing up delegated acts, the Commission should
ensure a simultaneous, timely and appropriate transmission of relevant
documents to the European Parliament and to the Council."
(19)               
The following Recitals 31a, 31b and 31c are
inserted:
"(31a)In order to ensure uniform conditions
for the implementation of Regulation (EC) No 1346/2000, implementing powers
should be conferred on the Commission. Those powers should be exercised in
accordance with Regulation (EU) No 182/2011 of the European Parliament and of
the Council of 16 February 2011 laying down the rules and general principles
concerning mechanisms for control by the Member States of the Commission's
exercise of implementing powers[21].
(31b) This Regulation respects the fundamental
rights and observes the principles recognised in the Charter of Fundamental
Rights of the European Union. In particular, this Regulation seeks to promote
the application of Articles 8, 17 and 47 concerning, respectively, the
protection of personal data, the right to property and the right to an effective
remedy and to a fair trial.
(31c) Directive 95/46/EC of the European
Parliament and of the Council of 24 October 1995 on the protection of
individuals with regard to the processing of personal data and on the free
movement of such data[22]
and Regulation 45/2001/EC of the European Parliament
and of the Council of 18 December 2000 on the protection of individuals with
regard to the processing of personal data by the Community institutions and
bodies and on the free movement of such data[23]
apply to the processing of personal data within the
framework of this Regulation."
(20)               
In recitals 32 and 33, the words "Treaty
establishing the European Community" are replaced by "Treaty on the
Functioning of the European Union".
(21)               
Articles 1 and 2 are replaced by the following
"Article 1
Scope 
1.           This
Regulation shall apply to collective judicial or administrative proceedings,
including interim proceedings, which are based on a law relating to insolvency
or adjustment of debt and in which, for the purpose of rescue, adjustment of
debt, reorganisation or liquidation, 
(a)         
the debtor is totally or partially divested of his
assets and a liquidator is appointed, or
(b)         
the assets and affairs of the debtor are subject to
control or supervision by a court.
The proceedings referred to in this paragraph shall
be listed in Annex A. 
2.           This
Regulation shall not apply to insolvency proceedings concerning 
(a)         
insurance undertakings, 
(b)         
credit institutions, 
(c)         
investment firms to the extent these are covered by
Directive 2001/24/EC as amended, and 
(d)         
collective investment undertakings. 
Article 2
Definitions
For the purposes of this Regulation:
(a)         
"insolvency proceedings" means the
proceedings listed in Annex A;
(b)         
"liquidator" means 
(i)      any person or body whose function is to
administer or liquidate assets of which the debtor has been divested or to
supervise the administration of his affairs. Those persons and bodies are
listed in Annex C; 
(ii)      in a case which does not involve the
appointment of, or the transfer of the debtor's powers to, a liquidator, the
debtor in possession. 
(c)         
"court" means in all articles except
Article 3b(2) the judicial body or any other competent body of a Member State
empowered to open insolvency proceedings, to confirm such opening or to take
decisions in the course of such proceedings;
(d)         
"judgment opening insolvency proceedings"
includes 
(i)      the decision of any court to open insolvency
proceedings or to confirm the opening of such proceedings, and 
(ii)      the decision by a court appointing a
provisional liquidator. 
(e)         
"the time of the opening of proceedings"
means the time at which the judgment opening insolvency proceedings becomes
effective, whether it is a final judgment or not;
(f)           
"the Member State in which assets are
situated" means, in the case of:
(i)      tangible property, the Member State
within the territory of which the property is situated,
(ii)      property and rights ownership of or
entitlement to which must be entered in a public register, the Member State
under the authority of which the register is kept,
(iii)     registered shares in companies, the
Member State within the territory of which the company having issued the shares
has its registered office, 
(iv)     financial instruments, title to which is
evidenced by entries in a register or account maintained by or on behalf of an
intermediary ("book entry securities"), the Member State in which the
register or account in which the entries are made is maintained, 
(v)     cash held in accounts with a credit
institution, the Member State indicated in the account's IBAN, 
(vi)     claims against third parties other than
those relating to assets referred to in subparagraph (v), the Member State
within the territory of which the third party required to meet them has the
centre of his main interests, as determined in Article 3(1);
(g)         
"establishment" means any place of
operations where the debtor carries out a non-transitory economic activity with
human means and assets;
(h)         
"local creditors" means the creditors
whose claims against the debtor arose from the operation of an establishment
situated in a Member State other than the one where the debtor's centre of main
interests is located; 
(i)           
"group of companies" means a number of
companies consisting of parent and subsidiary companies; 
(j)           
"parent company" means a company which
(i)      has a majority of the shareholders' or
members' voting rights in another company (a "subsidiary company");
or
(ii)      is a shareholder or member of the
subsidiary company and has the right to
(aa)    appoint or remove a majority of the
members of the administrative, management or supervisory body of that
subsidiary; or
(bb)   exercise a dominant influence over the
subsidiary company pursuant to a contract entered into with that subsidiary or to
a provision in its articles of association."
(22)               
In Article 3, paragraphs 1 and 3 are replaced by
the following:
"1.          The courts of the Member
State within the territory of which the centre of a debtor's main interests is
situated shall have jurisdiction to open insolvency proceedings ("main
proceedings"). The centre of main interests shall be the place where the
debtor conducts the administration of his interests on a regular basis and
which is ascertainable by third parties.
In the case of a company or legal person, the
place of the registered office shall be presumed to be the centre of its main
interests in the absence of proof to the contrary.
In the case of an individual exercising an
independent business or professional activity, the centre of main interests
shall be that individual's principal place of business; in the case of any
other individual, the centre of main interests shall be the place of the
individual's habitual residence.
3.           Where
insolvency proceedings have been opened in accordance with paragraph 1, any
proceedings opened subsequently in accordance with paragraph 2 shall be
secondary proceedings. In such a case, the relevant time for assessing whether
the debtor possesses an establishment within the territory of another Member
State shall be the date of the opening of the main proceedings."
(23)               
The following Articles 3a and 3b are inserted as
follows:
"Article
3a
Jurisdiction
for related actions
1.           The courts of the Member State within the
territory of which insolvency proceedings have been opened in accordance with
Article 3 shall have jurisdiction for any action which derives directly from
the insolvency proceedings and is closely linked with them.
2.           Where an action referred to in paragraph
1 is related to an action in civil and commercial matters against the same
defendant, the liquidator may bring both actions in the courts of the Member
State within the territory of which the defendant is domiciled, or, where the
action is brought against several defendants, in the courts of the Member State
within the territory of which any of them is domiciled, provided that that court
has jurisdiction pursuant to the rules of Regulation
(EC) No 44/2001. 
3.           For the purpose of this Article, actions
are deemed to be related where they are so closely connected that it is
expedient to hear and determine them together to avoid the risk of
irreconcilable judgments resulting from separate proceedings. 
Article
3b
Examination
as to jurisdiction; right to judicial review
1.           The
court seized of a request to open insolvency proceedings shall ex officio
examine whether it has jurisdiction pursuant to Article 3. The judgment opening
insolvency proceedings shall specify the grounds on which the jurisdiction of
the court is based, and, in particular, whether jurisdiction is based on Article
3(1) or (2). 
2.           Where
insolvency proceedings are opened in accordance with national law without a
decision by a court, the liquidator appointed in such proceedings shall examine
whether the Member State in which the proceedings are pending has jurisdiction
pursuant to Article 3. Where this is the case, the liquidator shall specify the
grounds on which jurisdiction is based and, in particular, whether jurisdiction
is based on Article 3(1) or (2). 
3.           Any
creditor or interested party who has his habitual residence, domicile or
registered office in a Member State other than the State of the opening of
proceedings, shall have the right to challenge the decision opening main
proceedings. The court opening main proceedings or the liquidator shall inform such
creditors insofar as they are known of the decision in due time in order to
enable them to challenge it."
(24)               
In Article 4 (2), point (m) is replaced by the
following:
(m)    the rules relating to the voidness,
voidability or unenforceability of legal acts detrimental to the general body
of creditors."
(25)               
The following Article 6a is inserted:
"Article 6a
Netting agreements
Netting agreements shall be governed solely by
the law of the contract governing such agreements."
(26)               
The following Article 10a is inserted:
"Article 10a
Approval requirements under
local law
Where the law of the Member State governing the
effects of insolvency proceedings on the contracts referred to in Articles 8
and 10 provides that a contract can only be terminated or modified with the
approval of the court opening insolvency proceedings but no insolvency
proceedings have been opened in that Member State, the court which opened the
insolvency proceedings shall have the competence to approve the termination or
modification of these contracts."
(27)               
Article 15 shall be replaced by the following:
"Article 15 
Effects of insolvency
proceedings on lawsuits or arbitral proceedings pending
The effects of insolvency proceedings on a pending
lawsuit or arbitral proceeding concerning an asset or a right of which the
debtor has been divested shall be governed solely by the law of the Member
State in which that lawsuit is pending or in which the arbitral proceedings
have their seat."
(28)               
Article 18 is amended as follows:
(a)                   
Article 18 paragraph 1 is replaced by the following:
1.           The
liquidator appointed by a court which has jurisdiction pursuant to Article 3(1)
may exercise all the powers conferred on him by the law of the State of the
opening of proceedings in another Member State, as long as no other insolvency
proceedings have been opened there nor any preservation measure to the contrary
has been taken there further to a request for the opening of insolvency
proceedings in that State. Subject to Articles 5 and 7, he may in particular
remove the debtor's assets from the territory of the Member State in which they
are situated. He may also give the undertaking that the distribution and
priority rights which local creditors would have had if secondary proceedings had
been opened will be respected in the main proceedings. Such an undertaking
shall be subject to the form requirements, if any, of the State of the opening
of the main proceedings and shall be enforceable and binding on the
estate."
(b)                   
In paragraph 3, the last sentence is replaced by
the following: 
"Those powers may not include coercive
measures, unless ordered by a court, or the right to rule on legal proceedings
or disputes."
(29)               
The following Articles 20a, 20b, 20c and 20d are
inserted:
"Article 20a
Establishment of insolvency
registers
Member States shall establish and maintain in
their territory one or several registers in which the following information is made
available to the public on the internet free of charge ("insolvency
registers"):
(a)          
the date of the opening of insolvency proceedings;
(b)         
the court opening insolvency proceedings and the
case reference number, if any;
(c)          
the type of insolvency proceedings opened;
(d)         
the name and address of the debtor;
(e)          
the name and address of the liquidator appointed in
the proceedings, if any; 
(f)           
the time limit for lodging claims;
(g)          
the decision opening insolvency proceedings; 
(h)          
the decision appointing the liquidator, if
different from the decision referred to in point (g) of this paragraph;
(i)            
the date of closing main proceedings. 
Article 20b
Interconnection of insolvency
registers
1.           The
Commission shall establish a decentralised system for the interconnection of
insolvency registers by means of implementing act. This system shall be
composed of the insolvency registers and the European e-Justice Portal which
shall serve as central public electronic access point to information from the
system. The system shall provide a search service in all the official languages
of the Union in order to make available the information referred to in Article
20a. 
2.           By means
of implementing act in accordance with the procedure referred to in Article 45b
(3), the Commission shall adopt the following by……[36 months after the entry
into force of the Regulation]: 
–              
the technical specification defining the methods of
communication and information exchange by electronic means on the basis of the
established interface specification for the system of interconnection of
insolvency registers;
–              
the technical measures ensuring the minimum
information technology security standards for communication and distribution of
information within the system of interconnection of insolvency registers;
–              
minimum criteria for the search service provided by
the European e-Justice Portal based on the information set out in Article 20a; 
–              
minimum criteria for the presentation of the results
of such searches based on the information set out in Article 20a; 
–              
the modalities and the technical conditions of
availability of services provided by the system of interconnection; and
–              
a glossary containing a basic explanation of the
national insolvency procedures listed in Annex A.
Article 20c
Costs of establishing and
interconnecting insolvency registers
1.           The
establishment and future development of the system of interconnection of
insolvency registers shall be financed from the general budget of the Union.
2.           Each Member
State shall bear the costs of adjusting its domestic insolvency registers to
make it interoperable with the European e-Justice Portal, as well as the costs
to administer, operate and maintain that register.
Article 20d
Registration of insolvency
proceedings
Where main or secondary proceedings are opened
in relation to a company or legal person or an individual exercising an
independent business or professional activity, the court opening insolvency
proceedings shall ensure that the information referred to in Article 20a is
published immediately in the insolvency register of the State of opening."

(30)               
Articles 21 and 22 are replaced by the following:
"Article 21
Publication in another Member
State 
1.           Until
such time as the system of interconnection of insolvency registers referred to
in Article 20b is established, the liquidator shall request that notice of the
judgment opening insolvency proceedings and, where appropriate, the decision
appointing him, be published in any other Member State where an establishment
of the debtor is located in accordance with the publication procedures provided
for in that State. Such publication shall specify the liquidator appointed and
whether the jurisdiction rule applied is that pursuant to Article 3(1) or (2).
2.           The
liquidator may request that the information referred to in the first paragraph of
this Article be published in any other Member State where assets or creditors
of the debtor are located in accordance with the procedure provided for in that
State." 
(31)               
Article 22 is replaced by the following:
"Article 22
Registration in public
registers of another Member State
Until such time as the system of
interconnection of insolvency registers referred to in Article 20b is established,
the liquidator shall request that the decisions referred to in Article 21 be
published in the land register, trade register or any other public register of any
other Member State where an establishment of the debtor is located and this
establishment has been entered into a public register of that Member State. The
liquidator may request such publication in any other Member State."
(32)               
Article 25 is replaced by the following:
"Article 25
Recognition and
enforceability of other judgments
1.           Judgments
handed down by a court whose judgment concerning the opening of proceedings is
recognised in accordance with Article 16 and which concern the course and
closure of insolvency proceedings, and compositions approved by that court
shall also be recognised with no further formalities. Such judgments shall be
enforced in accordance with Articles 32 to 56, with the exception of Article 34(2),
Regulation (EC) No 44/2001.
The first subparagraph shall also apply to
judgments deriving directly from the insolvency proceedings and which are
closely linked with them, even if they were handed down by another court.
The first subparagraph shall also apply to
judgments relating to preservation measures taken after the request for the
opening of insolvency proceedings or in connection with it.
2.           The
recognition and enforcement of judgments other than those referred to in
paragraph 1 shall be governed by the Regulation referred to in paragraph 1
provided that the Regulation is applicable."
(33)               
Article 27 is replaced by the following:
"Article 27
Opening of proceedings
Where main proceedings have been opened by a court
of a Member State and recognised in another Member State, a court of another
Member State which has jurisdiction pursuant to Article 3(2) may open secondary
insolvency proceedings in accordance with the provisions set out in this
Chapter. The effects of secondary proceedings shall be restricted to the assets
of the debtor situated within the territory of the Member State where those
proceedings have been opened."
(34)               
The following Article 29a is inserted:
"Article 29a
Decision to open secondary
proceedings 
1.           The
court seized of a request to open secondary proceedings shall immediately give
notice to the liquidator in the main proceedings and give him an opportunity to
be heard on the request. 
2.           Upon request
by the liquidator in the main proceedings, the court referred to in paragraph 1
shall postpone the decision of opening or refuse to open secondary proceedings
if the opening of such proceedings is not necessary to protect the interests of
local creditors, in particular, when the liquidator in the main proceedings has
given the undertaking referred to in Article 18 (1) and complies with its
terms. 
3.           When
deciding whether to open secondary proceedings, the court referred to in
paragraph 1 shall open the type of proceedings under its national law which is
the most appropriate taking into account the interests of the local creditors,
irrespective of whether any condition relating to the debtor's solvency are
fulfilled. 
4.           The
liquidator in the main proceedings shall be notified of the decision to open
secondary proceedings and shall have the right to challenge that decision."
(35)               
Article 31 is replaced by the following:
"Article 31
Cooperation and communication
between liquidators
1.           The
liquidator in the main proceedings and the liquidators in the secondary
proceedings shall cooperate with each other to the extent such cooperation is
not incompatible with the rules applicable to each of the proceedings. Such cooperation
may take the form of agreements or protocols.
2.           In particular,
the liquidators shall: 
(a)          
immediately communicate to each other any
information which may be relevant to the other proceedings, in particular any
progress made in lodging and verifying claims and all measures aimed at
rescuing or restructuring the debtor or at terminating the proceedings,
provided appropriate arrangements are made to protect confidential information;
(b)         
explore the possibility of restructuring the debtor
and, where such possibility exists, coordinate the elaboration and
implementation of a restructuring plan; 
(c)          
coordinate the administration of the realisation or
use of the debtor's assets and affairs; the liquidator in the secondary
proceedings shall give the liquidator in the main proceedings an early
opportunity to submit proposals on the realisation or use of the assets in the
secondary proceedings."
(36)               
The following Articles 31a and 31b are inserted:
"Article 31a
Cooperation and communication
between courts
1.           In
order to facilitate the coordination of main and secondary insolvency
proceedings concerning the same debtor, a court before which a request to open insolvency
proceedings is pending or which has opened such proceedings shall cooperate
with any other court before which insolvency proceedings are pending or which
has opened such proceedings to the extent such cooperation is not incompatible
with the rules applicable to each of the proceedings. For this purpose, the
courts may, where appropriate, appoint a person or body acting on its
instructions. 
2.           The
courts referred to in paragraph 1 may communicate directly with, or to request
information or assistance directly from each other provided that such communication
is free of charge and respects the procedural rights of the parties to the
proceedings and the confidentiality of information. 
3.           Cooperation
may be implemented by any appropriate means, including 
(a)          
communication of information by any means
considered appropriate by the court; 
(b)         
coordination of the administration and supervision
of the debtor's assets and affairs; 
(c)          
coordination of the conduct of hearings,
(d)         
coordination in the approval of protocols.
Article 31b
Cooperation and communication
between liquidators and courts
1.           In
order to facilitate the coordination of main and secondary insolvency
proceedings opened with respect to the same debtor, 
(a)          
a liquidator in main proceedings shall cooperate
and communicate with any court before which a request to open secondary proceedings
is pending or which has opened such proceedings and
(b)         
a liquidator in secondary or territorial insolvency
proceedings shall cooperate and communicate with the court before which a
request to open main proceedings is pending or which has opened such
proceedings,
2.           The cooperation
referred to in paragraph 1 shall be implemented by any appropriate means
including the means set out in Article 31a (3) to the extent these are not
incompatible with the rules applicable to each of the proceedings."
(37)               
Article 33 is amended as follows:
(a)                   
The title is replaced by the following 
"Stay of proceedings"
(b)                   
In paragraphs 1 and 2, the words "process of
liquidation" are replaced by "proceedings". 
(38)               
Article 34 is replaced by the following: 
"Article 34
Closure of main or secondary
insolvency proceedings
1.           The
closure of main proceedings shall not prevent the continuation of secondary
proceedings which are still open at that point in time. 
2.           Where
secondary proceedings concerning a legal person have been opened in the Member
State of that person's registered office and the closure of those proceedings
entails the dissolution of the legal person, such dissolution shall not prevent
the continuation of main proceedings which have been opened in another Member
State."
(39)               
In Article 35, the term "liquidation" is
replaced by "realisation".
(40)               
Article 37 is replaced by the following:
"Article 37 
Conversion of earlier
proceedings
The liquidator in the main proceedings may request
the court of the Member State where secondary proceedings have been opened to order
the conversion of the secondary proceedings into another type of insolvency proceedings
available under the law of that Member State."
(41)               
Article 39 is replaced by the following: 
"Article 39
Right to lodge claims
Any creditor who has his habitual residence,
domicile or registered office in a Member State other than the State of the
opening of proceedings, including the tax authorities and social security
authorities of Member States ("foreign creditor"), shall have the
right to lodge claims in the insolvency proceedings by any means of
communication, including electronic means, which are accepted by the law of the
State of opening. Representation by a lawyer or another legal professional
shall not be mandatory for the lodging of claims."
(42)               
Article 40 is amended as follows:
(a)         
In paragraph 2, the following sentence is added: 
"The notice shall also include a copy of the
standard claims form referred to in Article 41 or a link to the publication of
that form on the internet."
(b)         
The following paragraph 3 is inserted: 
"3.          The information referred
to in this Article shall be provided using the standard notice form to be
established in accordance with the advisory procedure referred to in Article
45b(4) and to be published in the European e-Justice Portal by…..[24 months
after the entry into force of the Regulation]. The form shall bear the heading
"Notice of insolvency proceedings" in all official languages of the
Union. It shall be transmitted in the official language or one of the official
languages of the State of the opening of proceedings or in another language which
that State has indicated it can accept in accordance with Article 41(3) if it
can be assumed that that language is easier to understand for the foreign creditors."
(43)               
Article 41 is replaced by the following: 
"Article 41
Procedure for lodging claims
1.           Any
known foreign creditor shall lodge his claim using the standard claims form to
be established in accordance with the advisory procedure referred to in Article
45b(4) and to be published on the European e-justice portal by [24 months after
the entry into force of the Regulation]. The form shall bear the heading
"Lodgment of claims" in all official languages of the Union.
2.           In
the standard claims form, the creditor referred to in paragraph 1 shall
indicate
(a)          
his name and address 
(b)         
the nature of the claim
(c)          
the amount of the claim and the date on which it
arose
(d)         
whether any preferential creditor status is claimed
(e)          
whether security in rem or a reservation of title
is alleged in respect of the claim and if so, what assets are covered by the
security interest he is invoking and
(f)           
whether any set-off is claimed and whether the
amount claimed is net of set-off.
The standard claims form shall be accompanied by copies
of supporting documents, if any. 
3.           Claims
may be lodged in any official language of the Union. The creditor may be
required to provide a translation into the official language or one of the
official languages of the State of the opening of proceedings or into another
language which that Member State has accepted. Each Member State shall indicate
at least one official language of the Union other than its own which it accepts
for the purpose of the lodging of claims.
4.           Claims
shall be lodged within the period stipulated by the law of the State of the
opening of insolvency proceedings. In the case of a foreign creditor, that
period shall not be less than 45 days following the publication of the opening of
proceedings in the insolvency register of the State of opening. 
5.           Where
the liquidator contests a claim lodged in accordance with this Article, he
shall give the creditor the opportunity to provide additional evidence on the
existence and the amount of the claim."
(44)               
Article 42 is deleted.
(45)               
the following Chapter IVa is inserted: 
"CHAPTER IVa
INSOLVENCY OF MEMBERS OF A GROUP OF COMPANIES
Article 42a
Duty to cooperate and
communicate information between liquidators
1.           Where
insolvency proceedings relate to two or more members of a group of companies, a
liquidator appointed in proceedings concerning a member of the group shall
cooperate with any liquidator appointed in proceedings concerning another
member of the same group to the extent such cooperation is appropriate to
facilitate the effective administration of the proceedings, is not incompatible
with the rules applicable to such proceedings and does not entail any conflict
of interests. That cooperation may take the form of agreements or protocols.
2.           In the
exercise of the cooperation referred to in paragraph 1, the liquidators shall
(a)          
immediately communicate to each other any
information which may be relevant to the other proceedings, provided
appropriate arrangements are made to protect confidential information; 
(b)         
explore the possibilities for restructuring the
group and, where such possibilities exist, coordinate with respect to the
proposal and negotiation of a coordinated restructuring plan;
(c)          
coordinate the administration and supervision of
the affairs of the group members subject to insolvency proceedings;
The liquidators may agree to grant additional
powers to the liquidator appointed in one of the proceedings where such an
agreement is permitted by the rules applicable to each of the proceedings.
Article 42b
Communication and cooperation
between courts 
1.           Where
insolvency proceedings relate to two or more members of a group of companies, a
court before which a request to open proceedings concerning a member of the group
is pending or which has opened such proceedings shall cooperate with any other
court before which a request to open proceedings concerning another member of
the same group is pending or which has opened such proceedings to the extent
such cooperation is appropriate to facilitate the effective administration of
the proceedings and is not incompatible with the rules applicable to them. For
this purpose, the courts may, where appropriate, appoint a person or body
acting on its instructions.
2.           The
courts referred to in paragraph 1 may communicate directly with each other, or
to request information or assistance directly from each other. 
3.           Cooperation
shall take place by any appropriate means, including 
(a)          
communication of information by any means
considered appropriate by the court provided that such communication shall be
free of charge and respect the procedural rights of the parties to the
proceedings and the confidentiality of information; 
(b)         
coordination of the administration and supervision
of the assets and affairs of the members of the group;
(c)          
coordination of the conduct of hearings;
(d)         
coordination in the approval of protocols.
Article 42c
Cooperation and communication
between liquidators and courts
A liquidator appointed in insolvency proceedings concerning
a member of a group of companies shall cooperate and communicate with any court
before which a request for the opening of proceedings with respect to another
member of the same group of companies is pending or which has opened such
proceedings to the extent such cooperation is appropriate to facilitate the
coordination of the proceedings and is not incompatible with the rules
applicable to them. In particular, the liquidator may request information from
that court concerning the proceedings regarding the other member of the group
or request assistance concerning the proceedings in which he has been
appointed.
Article 42d
Powers of the liquidators and
stay of proceedings
1.           A
liquidator appointed in insolvency proceedings opened with respect to a member
of a group of companies shall have the right 
(a)          
to be heard and to participate, in particular by
attending creditors' meetings, in any of the proceedings opened with respect to
any other member of the same group; 
(b)         
to request a stay of the proceedings opened with
respect to any other member of the same group; 
(c)          
to propose a rescue plan, a composition or a
comparable measure for all or some members of the group for which insolvency
proceedings have been opened and to introduce it into any of the proceedings
opened with respect to another member of the same group in accordance with law
applicable to those proceedings; and 
(d)         
to request any additional procedural measures under
the law referred to in point c) which may be necessary to promote rescue,
including the conversion of proceedings. 
2.           The
court having opened proceedings referred to in point b) of paragraph 1 shall stay
the proceedings in whole or in part if it is proven that such a stay would be
to the benefit of the creditors in these proceedings. Such a stay may be
ordered for up to three months and may be continued or renewed for the same
period. The court ordering the stay may require the liquidator to take any
suitable measure to guarantee the interests of the creditors in the proceedings."

(46)               
A new Article 44a is inserted:
"Article 44a
Information on national
insolvency law
1.           The
Member States shall provide, within the framework of the European Judicial
Network in civil and commercial matters established by Council Decision 2001/470/EC[24], with a view to making the
information available to the public, a description of their national insolvency
law and procedures, in particular relating to the matters listed in Article
4(2).
2.           The
Member States shall update that information regularly."
(47)               
Article 45 is replaced by the following:
"Article 45
Amendment of the Annexes
1.           The
Commission shall be empowered to adopt delegated acts to amend Annexes A and C in
accordance with the procedure laid down in this Article and Article 45a. 
2.           In order
to trigger an amendment of Annex A, Member States shall notify the Commission
of their national rules on insolvency proceedings which they want to have
included in Annex A, accompanied by a short description. The Commission shall
examine whether the notified rules comply with the conditions set out in Article
1 and, where this is the case, shall amend Annex A by way of delegated act."
(48)               
The following Articles 45a and 45b are inserted:
"Article 45a
Exercise of the delegation 
1.           The
power to adopt delegated acts is conferred on the Commission subject to the
conditions laid down in this Article.
2.           The
delegation of powers referred to in Article 45 shall be conferred for an
indeterminate period of time from the date of entry into force of this
Regulation.
3.           The delegation of powers
referred to in Article 45 may be revoked at any time by the European Parliament
or by the Council. A decision of revocation shall put an end to the delegation
of the power specified in that decision. It shall take effect on the day
following the publication of the decision in the Official Journal of the
European Union or at a later date specified therein. It shall not affect the
validity of any delegated acts already in force.
4.           As
soon as it adopts a delegated act, the Commission shall notify it
simultaneously to the European Parliament and to the Council.
5.           A
delegated act adopted pursuant to Article 45 shall enter into force if no
objection has been expressed by the European Parliament or the Council within a
period of two months after notification of that act to the European Parliament
and the Council or if, before the expiry of that period, the European
Parliament and the Council have both informed the Commission that they will not
object. That period shall be extended by two months at the initiative of the
European Parliament or the Council.
Article 45b
Power to adopt implementing
acts
1.           The power
to adopt implementing acts is conferred on the Commission for the following
purposes
(a)          
to provide for the interconnection of insolvency
registers as referred to in Article 20b; and 
(b)         
to establish and subsequently amend the forms
referred to in Articles 40 and 41. 
2.           In
adopting or amending the implementing acts referred to in paragraph 1, the
Commission shall be assisted by a committee within the meaning of Regulation
(EU) No 182/2011 of the European Parliament and of the Council.[25] 
3.           When
reference is made to this paragraph, Article 5 of Regulation 182/2011 shall
apply.
4.           When
reference is made to this paragraph, Article 4 of Regulation 182/2011 shall
apply."
(49)               
In Article 46, the date "1 June 2012"
shall be replaced by "…..[10 years after its entry into
application]".
(50)               
The following Article 46a shall be inserted:
"Article 46a
Data protection
1.           Member
States shall apply the Directive 95/46/EC to the processing of personal data
carried out in the Member States pursuant to this Regulation.
2.           Regulation
(EC) No 45/2001 shall apply to the processing of personal data carried out by
the Commission pursuant to this Regulation."
(51)               
Annex B is deleted.
Article 2
This Regulation shall enter into force on
the twentieth day following that of its publication in the Official Journal
of the European Union.
It shall apply from …..[24 months after the entry
into force of the Regulation] with the exception of the provision concerning
information on national insolvency law (Article 44a) which shall apply from
…..[12 months after its entry into force] .
This
Regulation shall be binding in its entirety and directly applicable in the
Member States in accordance with the Treaties.
Done at Strasbourg, 
For the European Parliament                       For
the Council
The President                                                 The
President
LEGISLATIVE FINANCIAL STATEMENT
1.           FRAMEWORK OF THE PROPOSAL/INITIATIVE 
1.1.        Title of the
proposal/initiative 
Proposal for a Regulation of the European parliament and of the
Council amending Council regulation (EC) N° 1346/2000 on insolvency proceedings
1.2.        Policy area(s) concerned
in the ABM/ABB structure[26] 
Title 33 - Justice
1.3.        Nature of the
proposal/initiative 
¨ The
proposal/initiative relates to a new action 
¨ The
proposal/initiative relates to a new action following a pilot
project/preparatory action[27]

Ø The proposal/initiative relates to the
extension of an existing action 
¨ The
proposal/initiative relates to an action redirected towards a new action 
1.4.        Objectives
1.4.1.     The Commission's
multiannual strategic objective(s) targeted by the proposal/initiative 
Development of an area of Justice, Justice for Growth 
1.4.2.     Specific objective(s) and
ABM/ABB activity(ies) concerned 
Specific objective No..
Judicial Cooperation in Civil and Commercial matters 
ABM/ABB activity(ies) concerned
33 03
1.4.3.     Expected result(s) and
impact
Specify the effects
which the proposal/initiative should have on the beneficiaries/groups targeted.
Increased efficiency and transparency of cross-border insolvency
procedures
1.4.4.     Indicators of results and
impact 
Specify the
indicators for monitoring implementation of the proposal/initiative.
1.5.        Grounds for the
proposal/initiative 
1.5.1.     Requirement(s) to be met in
the short or long term 
Revision of Regulation 1346/2000 on insolvency proceedings
1.5.2.     Added value of EU involvement
1.5.3.     Lessons learned from
similar experiences in the past
1.5.4.     Coherence and possible
synergy with other relevant instruments
1.6.        Duration and financial
impact 
¨ Proposal/initiative of limited
duration 
–     
¨  Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY 
–     
¨  Financial impact from YYYY to YYYY 
Ø Proposal/initiative of unlimited
duration
–     
Implementation with a start-up period from adoption
of regulation
–     
followed by full-scale operation.
1.7.        Management mode(s) envisaged[28] 
Ø Centralised direct management by the Commission 
¨ Centralised indirect management with the delegation of implementation tasks to:
–     
¨  executive agencies 
–     
¨  bodies set up by the Communities[29]

–     
¨  national public-sector bodies/bodies with public-service mission 
–     
¨  persons entrusted with the implementation of specific actions
pursuant to Title V of the Treaty on European Union and identified in the
relevant basic act within the meaning of Article 49 of the Financial Regulation

¨ Shared management with the Member States 
¨ Decentralised management with third countries 
¨ Joint management with international organisations (to be specified)
If more than one
management mode is indicated, please provide details in the
"Comments" section.
Comments 
Only the
interconnection of insolvency registers (central interconnection part) will
have a financial impact on the EU budget.
The
insolvency registers will be connected through the European e-Justice Portal
which shall serve as central public electronic access point to information from
the system (cf. Article 20b of the Proposal)
2.           MANAGEMENT MEASURES 
2.1.        Monitoring and reporting
rules 
Specify frequency
and conditions.
2.2.        Management and control
system 
2.2.1.     Risk(s) identified 
2.2.2.     Control method(s) envisaged

2.3.        Measures to prevent fraud
and irregularities 
Specify existing or
envisaged prevention and protection measures.
3.           ESTIMATED FINANCIAL IMPACT OF THE
PROPOSAL/INITIATIVE 
3.1.        Heading(s) of the
multiannual financial framework and expenditure budget line(s) affected 
·      Existing expenditure budget lines 
In order of
multiannual financial framework headings and budget lines.
 Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution 
 Number [Description………………………...……….] || Diff./non-diff. ([30]) || from EFTA[31] countries || from candidate countries[32] || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation 
 [3] || [33.0301] [Justice Programme] || Diff/ || NO || NO || NO || NO 
·      New budget lines requested 
In order of multiannual financial framework
headings and budget lines.
 Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution 
 Number [Heading……………………………………..] || Diff./non-diff. || from EFTA countries || from candidate countries || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation 
 [3] || [XX.YY.YY.YY]   ||   || YES/NO || YES/NO || YES/NO || YES/NO 
3.2.        Estimated impact on
expenditure 
3.2.1.     Summary of estimated impact
on expenditure 
EUR million (to 3 decimal places)
 Heading of multiannual financial framework: || Number || [Heading …3………...……………………………………………………………….] 
 DG: JUST ||   ||   || Year 2014[33] || Year 2015 || Year 2016 || Year 2017 || Years 2018, 2019, 2020 || TOTAL 
  Operational appropriations ||   ||   ||   ||   ||   ||   ||   ||   
 33.0301 || Commitments || (1) || 150.000 || 150.000 || 200.000 || 200.000 || 250.000 || 250.000 || 300.000 || 1.500.000 
 Payments || (2) || 150.000 || 150.000 || 200.000 || 200.000 || 250.000 || 250.000 || 300.000 || 1.500.000 
 Number of budget line || Commitments || (1a) ||   ||   ||   ||   ||   ||   ||   ||   
 Payments || (2a) ||   ||   ||   ||   ||   ||   ||   ||   
 Appropriations of an administrative nature financed  from the envelope for specific programmes[34] ||   ||   ||   ||   ||   ||   ||   ||   
 Number of budget line ||   || (3) ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL appropriations for DG JUST || Commitments || =1+1a +3 || 150.000 || 150.000 || 200.000 || 200.000 || 250.000 || 250.000 || 300.000 || 1.500.000 
 Payments || =2+2a +3 || 150.000 || 150.000 || 200.000 || 200.000 || 250.000 || 250.000 || 300.000 || 1.500.000 
  TOTAL operational appropriations || Commitments || (4) || 150.000 || 150.000 || 200.000 || 200.000 || 250.000 || 250.000 || 300.000 || 1.500.000 
 Payments || (5) || 150.000 || 150.000 || 200.000 || 200.000 || 250.000 || 250.000 || 300.000 || 1.500.000 
  TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL appropriations under HEADING 3 of the multiannual financial framework || Commitments || =4+ 6 || 150.000 || 150.000 || 200.000 || 200.000 || 250.000 || 250.000 || 300.000 || 1.500.000 
 Payments || =5+ 6 || 150.000 || 150.000 || 200.000 || 200.000 || 250.000 || 250.000 || 300.000 || 1.500.000 
If more than one heading is affected by the proposal /
initiative:
  TOTAL operational appropriations || Commitments || (4) ||   ||   ||   ||   ||   ||   ||   ||   
 Payments || (5) ||   ||   ||   ||   ||   ||   ||   ||   
  TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL appropriations under HEADINGS 1 to 4 of the multiannual financial framework (Reference amount) || Commitments || =4+ 6 || 150.000 || 150.000 || 200.000 || 200.000 || 250.000 || 250.000 || 300.000 || 1.500.000 
 Payments || =5+ 6 || 150.000 || 150.000 || 200.000 || 200.000 || 250.000 || 250.000 || 300.000 || 1.500.000 
 Heading of multiannual financial framework: || 5 || " Administrative expenditure " – not applicable 
EUR million (to 3 decimal places)
   ||   ||   || Year N || Year N+1 || Year N+2 || Year N+3 || … enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL 
 DG: <…….> || 
  Human resources ||   ||   ||   ||   ||   ||   ||   ||   
  Other administrative expenditure ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL DG <…….> || Appropriations ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL appropriations under HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) ||   ||   ||   ||   ||   ||   ||   ||   
EUR million (to 3 decimal places)
   ||   ||   || Year N[35] || Year N+1 || Year N+2 || Year N+3 || … enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL 
 TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments || 150.000 || 150.000 || 200.000 || 200.000 || 250.000 || 250.000 || 300.000 || 1.500.000 
 Payments || 150.000 || 150.000 || 200.000 || 200.000 || 250.000 || 250.000 || 300.000 || 1.500.000 
3.2.2.     Estimated impact on
operational appropriations 
–     
¨  The proposal/initiative does not require the use of operational
appropriations 
–     
Ø  The proposal/initiative requires the use of operational
appropriations, as explained below:
Commitment appropriations in EUR million (to 3 decimal
places)
 Indicate objectives and outputs   ò ||   ||   || Year N || Year N+1 || Year N+2 || Year N+3 || … enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL 
 OUTPUTS 
 Type of output[36] || Average cost of the output || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Total number of outputs || Total cost 
 SPECIFIC OBJECTIVE No 1[37] Judical Cooperation in Civil and Commercial matters 
 - Output || Maintenance of the interconnection of insolven-cy registries || 214 300 ||   || 150 000 ||   || 150 000 ||   || 200 000 ||   || 200 000 ||   || 250 000 ||   || 250 000 ||   || 300 000 ||   || 1 500 000 
 - Output ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 - Output ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 Sub-total for specific objective N°1 ||   || 150 000 ||   || 150 000 ||   || 200 000 ||   || 200 000 ||   || 250 000 ||   || 250 000 ||   || 300 000 ||   || 1 500 000 
 SPECIFIC OBJECTIVE No 2… ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 - Output ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 Sub-total for specific objective N°2 ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL COST ||   || 150 000 ||   || 150 000 ||   || 200 000 ||   || 200 000 ||   || 250 000 ||   || 250 000 ||   || 300 000 ||   || 1 500 000 
3.2.3.     Estimated impact on
appropriations of an administrative nature
3.2.3.1.  Summary 
–     
Ø  The proposal/initiative does not require the use of administrative
appropriations 
3.2.3.2.  Estimated requirements of
human resources 
–     
Ø  The proposal/initiative does not require the use of human
resources 
3.2.4.     Compatibility with the
current multiannual financial framework 
–     
Ø  Proposal/initiative is compatible with the multiannual financial
framework for the period 2014-2020.
3.2.5.     Third-party contributions 
ØThe proposal/initiative does not provide
for co-financing by third parties 
3.3.        Estimated impact on
revenue 
–     
Ø  Proposal/initiative has no financial impact on revenue.
[1]               For an overview of national pre-insolvency and hybrid
proceedings, see Section 2 of the Commission report of 12.12.2012 on the
evaluation of Council Regulation (EC) No 1346/2000 on insolvency proceedings. 
[2]               'Going concern' is a concept
used primarily in accounting which directs accountants to prepare financial
statements on the assumption that the business is not about to be liquidated
over the next 12-months period.
[3]               COM(2008)394,25.6.2008.
[4]               COM(2012) ……
[5]               See on the extent of this problem, Section 3.4.1 of
the Commission's Impact Assessment report accompanying this proposal. 
[6]               http://www.uncitral.org/uncitral/en/uncitral_texts/insolvency/1997Model.html
[7]               Case C – 396/09, judgment of 20.10.2011. 
[8]               Case C – 339/07, judgment of 12.2.2009. 
[9]               OJ L 12, 16.1.2001, p. 1.
[10]             Case C-454/09, judgment of 13.10.2011 (Commission v. Italy
– 'New Interline').
[11]             OJ L 156, 16.6.2012, p. 1.
[12]             COM(2011)759 final
[13]             OJ C , , p. .
[14]             OJ C , , p.
[15]             OJ L 160, 30.6.2000, p.1.
[16]             OJ C , , p.
[17]             OJ L 55, 28.2.2011, p. 13.
[18]             OJ L 12, 16.1.2001, p. 1.
[19]             OJ L 125, 5.5.2001, p. 15. 
[20]             OJ L 324, 10.12.2007, p. 79.
[21]             OJ L 55, 28.2.2011, p. 13.
[22]             OJ L 281, 23.11.1995, p. 31.
[23]             OJ L 8, 12.1.2001, p. 1.
[24]             OJ L 174, 27.6.2001, p. 25.
[25]             OJ L 55, 28.2.2011, p. 13.
[26]             ABM: Activity-Based Management – ABB: Activity-Based
Budgeting.
[27]             As referred to in Article 49(6)(a) or (b) of the
Financial Regulation.
[28]             Details of management modes and references to the
Financial Regulation may be found on the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html
[29]             As referred to in Article 185 of the Financial
Regulation.
[30]             Diff. = Differentiated appropriations / Non-diff. =
Non-Differentiated Appropriations
[31]             EFTA: European Free Trade Association. 
[32]             Candidate countries and, where applicable, potential
candidate countries from the Western Balkans.
[33]             Year N is the year in which implementation of the
proposal/initiative starts.
[34]             Technical and/or administrative assistance and
expenditure in support of the implementation of EU programmes and/or actions
(former "BA" lines), indirect research, direct research.
[35]             Year N is the year in which implementation of the
proposal/initiative starts.
[36]             Outputs are products and services to be supplied (e.g.:
number of student exchanges financed, number of km of roads built, etc.).
[37]             As described in Section 1.4.2. "Specific
objective(s)…"