Eurofood IFSC (Area of Freedom, Security and Justice) [2006] EUECJ C-341/04 (02 May 2006)

Eurofood IFSC (Area of Freedom, Security and Justice) [2006] EUECJ C-341/04 (02 May 2006)

The centre of main interests (COMI) of a subsidiary is presumed to be at its registered office unless objective and ascertainable factors show otherwise; appointment of a provisional liquidator with divestment of management powers constitutes opening of insolvency proceedings under the Regulation; main proceedings opened in one Member State must be recognised by others without review of jurisdiction; recognition may be refused only in cases of flagrant breach of the right to be heard.

Citation
[2006] EUECJ C-341/04
Parties
Debtor: Eurofood IFSC Ltd; Petitioner: Bank of America NA; Provisional Liquidator: Mr Farrell; Extraordinary Administrator (italy) / Appellant: Mr Bondi
Jurisdiction
European Union
Judgment Date
02 May 2006
Procedural Posture
Reference for Preliminary Ruling / Preliminary Reference From Supreme Court of Ireland to Court of Justice of the European Union
Outcome
Questions answered as set out in the operative part; guidance provided to referring court; no costs order by CJEU.
Legal Topics
Centre of Main Interests (comi), Recognition of Insolvency Proceedings, Jurisdiction in Cross Border Insolvency, Public Policy Exception, Appointment of Provisional Liquidator
Insolvency Law European Union Law Centre of Main Interests (comi) Recognition of Insolvency Proceedings Jurisdiction in Cross Border Insolvency Public Policy Exception Appointment of Provisional Liquidator

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 9 Party arguments 2
Sign in to unlock

Parties

Eurofood IFSC Ltd

Debtor

Bank of America NA

Petitioner

Mr Farrell

Provisional Liquidator

Mr Bondi

Extraordinary Administrator (italy) / Appellant

Procedural Posture

Reference for Preliminary Ruling / Preliminary Reference From Supreme Court of Ireland to Court of Justice of the European Union

Legal Issues

  1. 1 What constitutes the 'centre of main interests' (COMI) for a subsidiary in cross-border insolvency?
  2. 2 Does appointment of a provisional liquidator constitute opening of insolvency proceedings under Regulation 1346/2000?
  3. 3 Must Member States recognise main insolvency proceedings opened in another Member State without reviewing jurisdiction?

Ratio Decidendi

The centre of main interests (COMI) of a subsidiary is presumed to be at its registered office unless objective and ascertainable factors show otherwise; appointment of a provisional liquidator with divestment of management powers constitutes opening of insolvency proceedings under the Regulation; main proceedings opened in one Member State must be recognised by others without review of jurisdiction; recognition may be refused only in cases of flagrant breach of the right to be heard.

Court Disposition

Questions answered as set out in the operative part; guidance provided to referring court; no costs order by CJEU.

Orders

  • Presumption of COMI at registered office rebuttable only by objective, ascertainable factors.
  • Main insolvency proceedings must be recognised by other Member States without review of jurisdiction.