b/k b/k brenner & kollegen international insolvency lawyers secured transactions under the...
TRANSCRIPT
![Page 1: B/K B/K Brenner & Kollegen International Insolvency Lawyers Secured Transactions under the European Insolvency Regulation (EIR)](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d1a5503460f949ef95a/html5/thumbnails/1.jpg)
B/KB/KBrenner & Kollegen
International Insolvency Lawyers
www.bbrenner.com
Secured Transactions under the European Insolvency Regulation
(EIR)
![Page 2: B/K B/K Brenner & Kollegen International Insolvency Lawyers Secured Transactions under the European Insolvency Regulation (EIR)](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d1a5503460f949ef95a/html5/thumbnails/2.jpg)
Brenner, Secured Transactions... Case Study
Suppliers‘R.O.T.
-Stock- book debts-equipment
-deposit
Bank‘s Global Securities
![Page 3: B/K B/K Brenner & Kollegen International Insolvency Lawyers Secured Transactions under the European Insolvency Regulation (EIR)](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d1a5503460f949ef95a/html5/thumbnails/3.jpg)
Brenner, Secured Transactions... EIR Art. 4
Principle: lex fori concursus1. Save as otherwise provided in this Regulation, the law
applicable to insolvency proceedings and their effects shall be that of the Member State within the territory of which such proceedings are opened,...
2. The law of the State of the opening of proceedings shall determine ... in particular:
(a) - ...
(d) - conditions for a set-off
(m) - voidability of legal acts
![Page 4: B/K B/K Brenner & Kollegen International Insolvency Lawyers Secured Transactions under the European Insolvency Regulation (EIR)](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d1a5503460f949ef95a/html5/thumbnails/4.jpg)
Brenner, Secured Transactions... EIR Art. 5
Exception: Rights in Rem (R.I.R.)
1. The opening of insolvency proceedings shall not affect the rights in rem of creditors or third parties in respect of tangible or intangible, moveable or immoveable assets ... belonging to the debtor which are situated within the territory of another Member State at the time of the opening of proceedings.
2. (in particular):
(c) the right to demand the assets from ... anyone having possession ... contrary to the wishes of the party so entitled;
![Page 5: B/K B/K Brenner & Kollegen International Insolvency Lawyers Secured Transactions under the European Insolvency Regulation (EIR)](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d1a5503460f949ef95a/html5/thumbnails/5.jpg)
Brenner, Secured Transactions... EIR Art. 7
Exception: R.O.T.
1. The opening of insolvency proceedings against the purchaser of an asset shall not affect the seller‘s rights based on a R.O.T. where at the time of the opening of proceedings the asset is situated within the territory of a Member State other than the State of opening of proceedings.
2. ...
![Page 6: B/K B/K Brenner & Kollegen International Insolvency Lawyers Secured Transactions under the European Insolvency Regulation (EIR)](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d1a5503460f949ef95a/html5/thumbnails/6.jpg)
Brenner, Secured Transactions... UNCITRAL GuidelinesWorking Group VI
UNCITRAL aims at SME‘s need of credits
• Asset-backed financing gives SME‘s an easier and less costly access to credits
• In exchange: strengthen efficiency of securities on moveables (opposability against 3rd parties)
• Enforce transparency and publicity of such securities*
• Banks‘ and suppliers‘ credit securities should be treated equally
• Encourage multiple securitisation by the same asset
• Ensure enforceability in other countries.
![Page 7: B/K B/K Brenner & Kollegen International Insolvency Lawyers Secured Transactions under the European Insolvency Regulation (EIR)](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d1a5503460f949ef95a/html5/thumbnails/7.jpg)
Brenner, Secured Transactions... UNCITRAL GuidelinesWorking Group VI
*UNCITRAL Recommendations:• Securities should be made opposable towards 3rd
parties as a general effect (incl. assignments)
• States should grant super priority in insolvency proceedings
• But: clear rules for priority transparency by public register of ass. of book
debts
• Strict lex rei sitae-rule for goods on transit should be amended:
Law of State of origin / State of final destination should be applicable
![Page 8: B/K B/K Brenner & Kollegen International Insolvency Lawyers Secured Transactions under the European Insolvency Regulation (EIR)](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d1a5503460f949ef95a/html5/thumbnails/8.jpg)
Brenner, System of securities...
su p p lie r's es ta te :
- R e te n tio n o f t it le
d e b to r's e s ta te :
- a ss ig n m t. o f rece ivab le s,- tra n sfe r o f o w ne rsh ip
e s ta te o f th ird pe rso n s:- g ua ra n ties- d eb e n tu res
- b on ds ...
- su p p lie rs- a sse t-b a cke d c re d ito rs
- b u ye r o f N P L 'sb a n ks
![Page 9: B/K B/K Brenner & Kollegen International Insolvency Lawyers Secured Transactions under the European Insolvency Regulation (EIR)](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d1a5503460f949ef95a/html5/thumbnails/9.jpg)
Brenner, Secured Transactions... Case Study
Suppliers‘R.O.T.
-Stock- book debts-equipment
-deposit
Bank‘s Global Securities
![Page 10: B/K B/K Brenner & Kollegen International Insolvency Lawyers Secured Transactions under the European Insolvency Regulation (EIR)](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d1a5503460f949ef95a/html5/thumbnails/10.jpg)
Brenner, Secured Transactions...
German Insolvency System
1. Abolition of all preferential rights (Insolvency Act 1999)
2. R.O.T. and Collateral securities no part of the debtor‘s estate (R.O.T.) collaterals give priority rights Exception: collaterals are voidable
(3-months-period)
![Page 11: B/K B/K Brenner & Kollegen International Insolvency Lawyers Secured Transactions under the European Insolvency Regulation (EIR)](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d1a5503460f949ef95a/html5/thumbnails/11.jpg)
Brenner, Collateral Securities...
Securities‘ System on movables
1. ROT (= Eigentumsvorbehalt, EV)
2. Collateral securities on movables• Transfer of ownership by way of security
(= Sicherungsübereignung, SÜ)
• assignment of receivables by way of sec.(= Sicherungsabtretung, SAbtr)
3. Guaranties, debentures, bonds, ...
![Page 12: B/K B/K Brenner & Kollegen International Insolvency Lawyers Secured Transactions under the European Insolvency Regulation (EIR)](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d1a5503460f949ef95a/html5/thumbnails/12.jpg)
Brenner, Collateral Securities...
Securities‘ System
1. R.O.T. a) simple version (= goods are still in stock)
b) extended version• Permission to sell property
+• Assignment of receivables
![Page 13: B/K B/K Brenner & Kollegen International Insolvency Lawyers Secured Transactions under the European Insolvency Regulation (EIR)](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d1a5503460f949ef95a/html5/thumbnails/13.jpg)
Brenner, German Securities‘ System...
German Securities‘ System
1. ROT (= Eigentumsvorbehalt, EV)/Test: Did parties agree upon it
• in time? (at closing of contract)• in the proper way? (no formal
requirements) Is there proof ? („always get it in writing!“) Can you identify the goods? :-(
![Page 14: B/K B/K Brenner & Kollegen International Insolvency Lawyers Secured Transactions under the European Insolvency Regulation (EIR)](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d1a5503460f949ef95a/html5/thumbnails/14.jpg)
Brenner, German Securities‘ System...
Who has got to prove what:
Supplier / Owner • original ownership*• Delivery
Administrator/liquidator• Payment (i.e. automatic passing of title)
![Page 15: B/K B/K Brenner & Kollegen International Insolvency Lawyers Secured Transactions under the European Insolvency Regulation (EIR)](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d1a5503460f949ef95a/html5/thumbnails/15.jpg)
Brenner, German Securities‘ System...
*original ownership:
Problem: mixed stock Supplier / owner can‘t even prove
original ownership on certain goods
Therapy: transfer of all title to „suppliers‘ pools“
Association owns 100 % of stock No identification necessary any more
![Page 16: B/K B/K Brenner & Kollegen International Insolvency Lawyers Secured Transactions under the European Insolvency Regulation (EIR)](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d1a5503460f949ef95a/html5/thumbnails/16.jpg)
Brenner, German Securities‘ System...
Securities‘ System
1. R.O.T. a) simple version (= goods are still in stock)
b) extended version
• Permission to sell property
against
• Assignment of future receivables
![Page 17: B/K B/K Brenner & Kollegen International Insolvency Lawyers Secured Transactions under the European Insolvency Regulation (EIR)](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d1a5503460f949ef95a/html5/thumbnails/17.jpg)
Brenner, German Securities‘ System...
R.O.T. „extended version“(Assignment of certain unidentified, future receivables)
• No formal requirements• Opposable to third parties (admin., factor)• Preferential towards banks-assignments• But: Restricted to special receivables
Problem: identification!
Therapy: see „suppliers‘ pools“
![Page 18: B/K B/K Brenner & Kollegen International Insolvency Lawyers Secured Transactions under the European Insolvency Regulation (EIR)](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d1a5503460f949ef95a/html5/thumbnails/18.jpg)
Brenner, German Securities‘ System...
Competing securities
Supplier‘sR.O.T.
-stock-receivables
BanksGlobal securities
Landlord‘slien
-Preferential, but-Identification necessary
-not preferential but-Global :-)
- secondary
![Page 19: B/K B/K Brenner & Kollegen International Insolvency Lawyers Secured Transactions under the European Insolvency Regulation (EIR)](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d1a5503460f949ef95a/html5/thumbnails/19.jpg)
Brenner, Secured Transactions... Case Study
Suppliers‘R.O.T.
-Stock- book debts-equipment
-deposit
Bank‘s Global Securities
![Page 20: B/K B/K Brenner & Kollegen International Insolvency Lawyers Secured Transactions under the European Insolvency Regulation (EIR)](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d1a5503460f949ef95a/html5/thumbnails/20.jpg)
Dortmund Public Hearing 14. June 2006
in re:
Podolski vs. Zurawski
in re:
![Page 21: B/K B/K Brenner & Kollegen International Insolvency Lawyers Secured Transactions under the European Insolvency Regulation (EIR)](https://reader030.vdocument.in/reader030/viewer/2022032723/56649d1a5503460f949ef95a/html5/thumbnails/21.jpg)
B/KB/KBrenner & Kollegen
International Insolvency Lawyers
www.bbrenner.com