Council Regulation (EC) No. 1346/2000 on bankruptcy proceedings to affect Czech entities doing business in foreign countries

In the Czech Republic as well as in other EU countries, the first events from application of Council Regulation (EC) No. 1346/2000 on Bankruptcy Proceedings have appeared pursuant to which courts of the member state in which the debtor’s main interests are concentrated are competent to commence bankruptcy proceedings. In case of a company or another legal entity, the registered office is considered to be the place where main interests are concentrated, unless the contrary is proven. A court of such member state can newly declare bankruptcy with effects in the Czech Republic in respect of a Czech entity with a registered office in the Czech Republic but with main interests on the territory of another EU member state without the necessity of undergoing the procedure for recognition of an insolvency decision. This also applies in the opposite case in which Czech courts can declare bankruptcy in respect of a debtor from another EU member state under the same conditions.