Multinational enterprise groups in insolvency: how should the European Union act?

Abstract

Despite the reality of the multinational enterprise group, many jurisdictions only deal with the single corporate entity. This is also the case in the context of cross-border insolvency. This article aims to provide guidance on how the European Union should respond to this problem. A logical first step would be to include specific provisions to deal with multinational enterprise groups in the European Insolvency Regulation. This article elaborates on the possibility of an 'adaptive framework', as the enormous variety of possibilities in the way these multinational enterprise groups are structured would then be appreciated. The second step in the process of regulating multinational enterprise groups in insolvency would be the standardization of insolvency laws on the treatment of multinational enterprise groups in insolvency, as a universalist approach, e.g. the centralization or coordination of the insolvency proceedings against enterprise groups, would be difficult to achieve without the legal means to consolidate the insolvency proceedings against multinational enterprise groups.