Secondary Insolvency Proceedings

Abstract The European Insolvency Regulation permits the opening of territorial proceedings conducted parallel to main proceedings, thereby modifying the concept of universality through the existence of so-called secondary proceedings. Secondary proceedings serve different purposes and are characterized by the fact that they are limited in their scope, as they only affect assets within the Member State in which the secondary proceedings have been opened. While the requirements for the opening of secondary proceedings as well as their effects are largely governed by the lex fori concursus secundarii, the EIR not only modifies some of these requirements but also contains an entire set of rules concerning the coordination of secondary and main proceedings to ensure efficient administration of the debtor’s assets. This chapter will therefore examine the principles of secondary proceedings, the requirements for and the effects of the opening of such proceedings, and the relationship between main and secondary proceedings.