Pearse Doherty (Donegal South West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

203. To ask the Minister for Justice and Equality the position of this State recognising bankruptcy declarations in other jurisdictions; and if there are bankruptcy declarations in jurisdictions which this State does not recognise. [19354/13]

Alan Shatter (Dublin South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The EU Regulation on insolvency proceedings of 2000, which came into effect in 2002, is a mutual recognition instrument. In determining an application for the opening of an insolvency proceeding, listed in the Annex to the Regulation, for which it would have exclusive power as the primary proceedings of a company or of a natural person, the Regulation requires that a court should determine the centre of main interest of the applicant in the context of assuming jurisdiction.

Under the EU Insolvency Regulation, Member States recognise bankruptcies in other Member States where the centre of main interest of the debtor is determined to be within that Member State.

The European Commission in December, 2012 published a proposal to modernise cross-border insolvency law which seeks to make cross-border insolvency proceedings more efficient, benefiting both debtors and creditors throughout the EU. One of the primary aims of the new Regulation will be to give potentially viable companies and entrepreneurs a second chance before being declared insolvent. The proposal also addresses a range of other insolvency issues. Detailed consideration of the provisions contained in the new draft Regulation has now commenced in a Working Group chaired by the Irish Presidency.

In relation to bankruptcy orders arising outside of the EU, an Irish Court when faced with an application for the recognition of a foreign bankruptcy order will, on basis of comity of nations consider the process in that jurisdiction and decide whether it would recognise such an order were it to be made in this jurisdiction. It would, depending on the circumstances of the particular case, be open to the Court to recognise the foreign bankruptcy order based on evidence produced to the Court.