David Stanton (Cork East, Fine Gael) | Oireachtas source

This whole thing is limited to providing an agreed legal framework between EU member states for mutual recognition and enforcement of national insolvency procedures in insolvency cases with a cross-border dimension. The Deputy is correct in what he is saying there. This would be where a insolvent company or individual has branches or assets in more than one member state. It sets out agreed common EU rules as to which member state's courts will have jurisdiction to deal with the insolvency and which member state's national law will apply and ensure court judgments made under the above rules, including the appointment of a liquidator, will be recognised in all other member states. The recast regulation also updates EU law in this area to strengthen recognition of pre-insolvency procedures and debt restructuring and sets out new strengthened rules on insolvency proceedings which involve groups of companies based in different member states. It clarifies and extends the rules on secondary proceedings where the main insolvency proceeding is before a court in one member state but the company or individual has a base with assets or obligations in a different member state. The recast regulation is regarded as highly compatible with existing law and practice in Ireland, as the Deputy has said.