CHAPTER IGENERAL PROVISIONS

Article 1F1Application and jurisdiction

F21.

The grounds for jurisdiction to open insolvency proceedings set out in paragraph 1B are in addition to any grounds for jurisdiction to open such proceedings which apply in the laws of any part of the United Kingdom.

1A.

There is jurisdiction to open insolvency proceedings listed in paragraph 1B where the proceedings are opened for the purposes of rescue, adjustment of debt, reorganisation or liquidation and—

(a)

the centre of the debtor's main interests is in the United Kingdom; or

(b)

the centre of the debtor's main interests is in a Member State and there is an establishment in the United Kingdom.

1B.

The proceedings referred to in paragraph 1 are—

(a)

winding up by or subject to the supervision of the court;

(b)

creditors' voluntary winding up with confirmation by the court;

(c)

administration, including appointments made by filing prescribed documents with the court;

(d)

voluntary arrangements under insolvency legislation; and

(e)

bankruptcy or sequestration.

2.

This Regulation shall not apply to proceedings referred to in paragraph 1 that concern:

(a)

insurance undertakings;

(b)

credit institutions;

(c)

investment firms and other firms, institutions and undertakings to the extent that they are covered by F3the Credit Institutions (Reorganisation and Winding up) Regulations 2004; or

(d)

collective investment undertakings.

Article 2Definitions

For the purposes of this Regulation:

  1. (1)

    F4...

  2. (1A)

    F5“Member State” means a state which is a member of the EU other than Denmark;

  3. (2)
    ‘collective investment undertakings’ means undertakings for collective investment in transferable securities (UCITS) as defined in Directive 2009/65/EC of the European Parliament and of the Council13 and alternative investment funds (AIFs) as defined in Directive 2011/61/EU of the European Parliament and of the Council14;
  4. (3)

    F6...

  5. (4)

    ‘insolvency proceedings’ means the proceedings F7listed in Article 1(1B) which there is jurisdiction to open under Article 1(1A) and includes interim proceedings;

  6. (5)

    ‘insolvency practitioner’ means any person or body whose function, including on an interim basis, is to:

    1. (i)

      verify and admit claims submitted in insolvency proceedings;

    2. (ii)

      represent the collective interest of the creditors;

    3. (iii)

      administer, either in full or in part, assets of which the debtor has been divested;

    4. (iv)

      liquidate the assets referred to in point (iii); or

    5. (v)

      supervise the administration of the debtor's affairs.

    The persons and bodies referred to in the first subparagraph are listed in Annex B;

  7. (6)

    ‘court’ means:

    1. (i)

      F8...

    2. (ii)

      F9... the judicial body or any other competent body F9... empowered to open insolvency proceedings, to confirm such opening or to take decisions in the course of such proceedings;

  8. (7)

    ‘judgment opening insolvency proceedings’ includes:

    1. (i)

      the decision of any court to open insolvency proceedings or to confirm the opening of such proceedings; and

    2. (ii)

      the decision of a court to appoint an insolvency practitioner;

  9. (8)

    ‘the time of the opening of proceedings’ means the time at which the judgment opening insolvency proceedings becomes effective, regardless of whether the judgment is final or not;

  10. (9)

    F10...

  11. (10)

    ‘establishment’ means any place of operations where a debtor carries out or has carried out in the 3-month period prior to the request to open F11... insolvency proceedings a non-transitory economic activity with human means and assets;

  12. (11)

    F12...

  13. (12)

    F12...

  14. (13)

    F12...

  15. (14)

    F12...

Article 3F13Centre of main interests

1.

F14...The centre of main interests shall be the place where the debtor conducts the administration of its 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. That presumption shall only apply if the registered office has not been moved F15from the United Kingdom to a Member State or to the United Kingdom from a Member State within the 3-month period prior to the request for the opening of insolvency proceedings.

In the case of an individual exercising an independent business or professional activity, the centre of main interests shall be presumed to be that individual's principal place of business in the absence of proof to the contrary. That presumption shall only apply if the individual's principal place of business has not been moved F16from the United Kingdom to a Member State or to the United Kingdom from a Member State within the 3-month period prior to the request for the opening of insolvency proceedings.

In the case of any other individual, the centre of main interests shall be presumed to be the place of the individual's habitual residence in the absence of proof to the contrary. This presumption shall only apply if the habitual residence has not been moved F17from the United Kingdom to a Member State or to the United Kingdom from a Member State within the 6-month period prior to the request for the opening of insolvency proceedings.

F182.

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F183.

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F184.

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Article 4Examination as to jurisdiction

1.

A court seised of a request to open insolvency proceedings shall of its own motion examine whether it has jurisdiction pursuant to F19Article 1(1A) (a) or (b). F20Where there is jurisdiction to open insolvency proceedings on either of the grounds specified in Article 1(1A)(a) or (b), the judgment opening such proceedings must state which of those grounds is applicable.

2.

Notwithstanding paragraph 1, where insolvency proceedings are opened F21... without a decision by a court, F21... the insolvency practitioner appointed in such proceedings F22must examine the grounds on which there is jurisdiction to open the proceedings under Article 1(1A). F23Where this is the case and there is jurisdiction to open insolvency proceedings on either of the grounds specified in Article 1(1A)(a) or (b), the insolvency practitioner must specify in the decision opening the proceedings which of those grounds is applicable.

Article 5Judicial review of the decision to open F24... insolvency proceedings

1.

The debtor or any creditor may challenge before a court the decision opening F25... insolvency proceedings on F26the grounds of jurisdiction under Article 1(1A)(a).

2.

The decision opening F27... insolvency proceedings may be challenged by parties other than those referred to in paragraph 1 or on grounds other than a lack of F28... jurisdiction F29under Article 1(1A)(a) where F30the relevant law (other than this Regulation) of the part of the United Kingdom in which the matter is being determined so provides.

F31Article 6Jurisdiction for actions deriving directly from insolvency proceedings and closely linked with them

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F31Article 7Applicable law

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F31Article 8Third parties' rights in rem

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F31Article 9Set-off

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F31Article 10Reservation of title

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F31Article 11Contracts relating to immoveable property

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F31Article 12Payment systems and financial markets

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F31Article 13Contracts of employment

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F31Article 14Effects on rights subject to registration

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F31Article 15European patents with unitary effect and Community trade marks

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F31Article 16Detrimental acts

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F31Article 17Protection of third-party purchasers

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F31Article 18Effects of insolvency proceedings on pending lawsuits or arbitral proceedings

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