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Cross-border business: any threat of cross-border insolvency? (1) (2/29/19)

EU registered companies are increasingly doing business across the EU by setting up branches, subsidiaries, or permanent establishments. Cross-border business is an outcome of the free market economy that favourably affects society, including corporate competitiveness, employment, innovation, and overall economic growth. However, if a company’s financial indicators suggest any financial difficulties, then it should consider insolvency proceedings. An insolvent cross-border company has a number of questions including which court has jurisdiction to hear an insolvency petition and which national law will govern it. This article explores key aspects of starting cross-border insolvency proceedings.

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