International
How to deal with the insolvency of an international
business partner or affiliated company?
When an internationally active company or a company within a group with foreign connections files for insolvency, the first step is to determine the country in which the proceedings will be opened and the applicable law. Within the EU, the decisive factor is the “COMI” (center of main interests), i.e., the center of the debtor’s main interests.
If insolvency proceedings are opened abroad, you must examine how foreign insolvency law affects your company and existing contractual relationships. For example, consider the continuation, suspension, or termination of current contracts; the filing of claims; and the examination of filed claims.
Our lawyers specializing in international insolvency law will support you in handling such cases legally and protect your interests in Germany, France, or a third country. We collaborate closely with our colleagues from our a-Global partner network to advise you on matters such as examining rights of separation or exclusion (e.g., retention of title), asserting priority claims, and securing contractual claims in insolvency.
Summary
How to determine the competent court in cross-border insolvency cases?
In the event of insolvency within the European Union, the competent court is determined by the location of the “center of main interests” (COMI) of the insolvent company.
Depending on the economic focus of the debtor’s activities, whether in Germany, France, or a third country, our lawyers specializing in international insolvency law will assist you in determining the internationally competent insolvency court in close coordination with our colleagues from our a-Global partner network.
What impact can the insolvency of a foreign business partner (supplier or customer) have on your own company?
The insolvency of a foreign business partner – whether a supplier or customer – can significantly impact your contracts and deliveries. For example, if insolvency proceedings are opened against a foreign customer, there is a risk that outstanding claims will go unpaid.
Therefore, it is essential to carefully examine how foreign insolvency proceedings affect your contractual rights and obligations. Some countries have special regulations to protect foreign creditors, while others apply the same rules to both domestic and foreign parties.
Our lawyers specializing in international commercial and insolvency law can advise you on the best legal strategies to protect your interests and safeguard your claims in the event of the insolvency of a foreign business partner in Germany, France, or a third country, in close cooperation with our colleagues from our a-Global partner network.
You have any other questions?
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