Third-Party Releases in Insolvency of Multinational Enterprise Groups

2020 ◽  
Author(s):  
Ilya Kokorin
Keyword(s):  
Multinational Enterprise ◽  
Third Party ◽  
Enterprise Groups

Third-Party Releases in Insolvency of Multinational Enterprise Groups

2021 ◽  
Vol 18 (1) ◽  
pp. 107-140
Author(s):  
Ilya Kokorin
Keyword(s):  
Business Models ◽  
Multinational Enterprise ◽  
Third Parties ◽  
Third Party ◽  
Insolvency Law ◽  
Legal Responses ◽  
Group Members ◽  
Legitimate Expectations ◽  
Enterprise Groups ◽  
The Eu

Abstract Europe is experiencing the rise of restructuring proceedings, which has recently culminated in the adoption of the Restructuring Directive. While being a major achievement in harmonising substantive (pre)insolvency law in the EU, it lacks rules targeting restructuring of multinational enterprise groups. As a result, effectiveness of group reorganisations may be undermined. Nevertheless, some jurisdictions adopt innovative tools, facilitating group solutions. Among them – third-party releases. Such releases entail a total or partial discharge or amendment of claims against third parties, such as co-obligors, guarantors and collateral providers (typically, group members) in the insolvency or restructuring proceeding of the principal debtor.The diversity of approaches to third-party releases highlights their controversial nature. Such releases may frustrate legitimate expectations of creditors relying on cross-guarantees and other forms of cross-liability arrangements. Extending the effects of debt reorganisation to third parties in the absence of a separate insolvency proceeding may also run contrary to the longstanding views on corporate insolvency and entity shielding. This article argues that a single-entity-restructuring risks being short-sighted and that third-party releases are a matter of commercial necessity, synchronising legal responses with actual business models and better addressing the complexity of group interdependencies, realised through various intra-group liability arrangements.

scholarly journals Sharing data on the activities of multinational enterprise groups: Innovations to redesign statistical practices and processes

2020 ◽  
Vol 36 (3) ◽  
pp. 785-796
Author(s):  
Timo Koskimäki ◽  
Rami Peltola
Keyword(s):  
Economic Activity ◽  
Statistical Data ◽  
Multinational Enterprise ◽  
Economic Data ◽  
National Data ◽  
Cross Border ◽  
Economic Statistics ◽  
Enterprise Groups ◽  
Work Done

The professional discussion on “The future of economic statistics” has a practical driver: Economic statistics, produced by national statistical offices, face severe difficulties in describing the national and global economic development in a relevant and coherent manner. This is not only our perception as statisticians – there is a growing criticism towards traditional economic statistics among researchers, policymakers and other users. In this article, we reflect on the factors that have caused the current situation and propose solutions to improving the situation by data sharing. One aspect of the solution relates to the role of national statistical offices. Instead of being solely national institutions, dealing with national data only, they should exploit the possibilities of using statistical data, collected by statistical authorities of other countries, to produce better quality economic statistics. The other aspect of the solution is the sharing of innovative practices to understand and correctly record the activities of multinational enterprise groups (MNEs). The proposals we make in this article are not restricted to MNEs but are applicable to any type of economic activity with a cross-border dimension. The observations we make here are based on the work done when preparing the UNECE Guide to Sharing Economic Data.

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