Insolvency Regulation

[6] The Regulation applies between all member states of the European Union, with the exception of Denmark which has an opt-out from the EU's Area of freedom, security and justice, and focuses upon creating a framework for the commencement of proceedings and for the automatic recognition and co-operation between the different member states.

Like the UNCITRAL Model Law on Cross-Border Insolvency, the EC Regulation also employs the concept of a centre of main interest (or "COMI").

The definition of the COMI is left to member states in their implementation of the Regulation, but paragraph (13) of the preamble states: 'The "centre of main interests" should correspond to the place where the debtor conducts the administration of his interests on a regular basis and is therefore ascertainable by third parties.'

If the COMI of an entity is outside of the European Union then the insolvency proceedings are not subject to the Regulation.

[10][11] An amendment to the regulation was approved in 2015, which again applied to all EU member states except Denmark.