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1 Restructuring and Insolvency 2009/10 Finland Finland Pauliina Tenhunen, Ville Ahtola and Anna-Kaisa Nenonen Castrén & Snellman Attorneys Security and priorities 1. What are the most common forms of security taken in relation to immovable and movable property? Are any specific formalities required for the creation of security by companies? Immovable property The only security interest that can be taken over immovable property is a mortgage. The owner of real property can grant a right of mortgage as security for a specified claim. Neither possession nor legal title of the property passes to the creditor. There is no limit to the number or value of mortgages that an owner can grant over a piece of property. As a result, before taking a mortgage, a creditor should determine whether the mortgage represents adequate security by comparing the value of any pre-existing (and therefore higher ranking) mortgages with the property s estimated value. Movable property The most common types of security that can be taken over movable property are a: Mortgage. A mortgage can be taken over some forms of movable property, including certain motor vehicles, aircrafts and ships. Floating charge. A floating charge is a specific type of mortgage, where a company s fluctuating assets, such as its trading stock, are pledged as security for a specified claim. As control of the assets is not transferred to the creditor, the debtor is free to dispose of them without obtaining the creditor s consent. The creditor receives one or more mortgage bonds as proof of its security interest over the debtor s assets. If the debtor defaults, the creditor has a right to receive preferential payment from the sale proceeds of the assets subject to the floating charge (when these assets are sold either within the insolvency proceedings or as part of a sale of the business). debtor then receives one or more mortgage bonds, which serve as certificates and can be given to creditors as proof of security for their claims. Floating charge. A floating charge must be registered in the floating charge register. Mortgage bonds are issued as certificates for a floating charge. Pledge. There are three possible ways to establish a pledge, depending on the type of property acting as security: Placing the pledged property in the creditor s control. This is problematic if the debtor needs the property in its business operations; Registration. A pledge can only be established in this way by operation of law. A pledge created by registration is usually referred to as a mortgage. Other pledges that can be registered are those relating to book-entry securities (shares of a limited company that are only noted in the company s books and are not evidenced by share certificates), and intellectual property rights, including patents and trade marks; Notice of assignment. A pledge can be created by this method if the pledged property, such as shares without share certificates and not entered into a book-entry system, cannot be placed in the creditor s control or if the property is in a third party s possession. Where a claim is being pledged, the notice must be given to the debtor of the party making the pledge. In other cases, the notice must be given to the third party who possesses the property. A secondary pledge in property can also be created by giving notice of assignment to the creditor. 2. Where do creditors and shareholders rank on the insolvency of a company? Pledge. The debtor or a third party able to transfer title can give a pledge over almost any definable property, which acts as security for a specified claim. If the debt is not discharged when due, the creditor has the right to receive preferential payment from the sale proceeds of the pledged property. Formalities The following formalities apply: Mortgage. A mortgage over immovable property must be entered in the register of land ownership and mortgages. The On an insolvency, the creditors rank as follows (Act on the Order of Payments (1992/1578)): Claims secured by a lien or collateral, right of retention or a legally registered encumbrance on the company s property. Claims based on costs incurred during corporate restructuring proceedings. Claims secured by floating charge (business mortgages up to 50% of the value of the assets subject to a floating charge). CROSS-BORDER HANDBOOKS 59 This chapter was first published in the Cross-border Restructuring and Insolvency Handbook 2009/10 and is reproduced with the kind permission of the publisher,

2 Finland Restructuring and Insolvency 2009/10 Unsecured claims. Claims involving interests accrued after bankruptcy proceedings have commenced, capital loans, gifts and certain fines. Shareholders receive payment based on their ownership in the company only if any assets remain after all other creditors have been paid in full. 3. Are there any mechanisms used by trade creditors to secure unpaid debts? Rescue and insolvency procedures 5. Please briefly describe rescue and insolvency procedures that are available in your jurisdiction. In each case, please state: The objective of the procedure and, where relevant, prospects for recovery. Companies to which it can potentially apply. How it is initiated, when and by whom. Substantive tests that apply (where relevant). In addition to securing unpaid debts by floating charge and pledge (see Question 1), trade creditors commonly use retention of title clauses if they are selling movable property. The seller can reserve title to it until the buyer has paid the purchase price. This gives the seller a right of recovery where the buyer is in breach of contract. Retention of title also creates a strong position for the seller in relation to other creditors during execution proceedings (see Question 4, Enforcement proceedings). However, the retention of title will be of no effect against the bankruptcy estate if this clause has been agreed after the debtor has taken possession of the assets or it is eligible to attach the respective assets to other assets or otherwise dispose of them as if it were the owner (Bankruptcy Act (120/2004)). A retention of title clause is usually incorporated into the selling party s standard contractual conditions. Once the purchase price has been paid in full, title to delivered goods passes to the buyer without further formalities. 4. Are there any procedures (other than the formal rescue or insolvency procedures described in Question 5) that can be invoked by creditors to recover their debt? The following procedures can be invoked by creditors to recover their debt: Application for summary judgment. A creditor can take legal action by filing an application for summary judgment against a company at the court of first instance. Enforcement proceedings. Where a creditor has obtained a court judgment confirming the amount of a claim, it is entitled to receive this sum from the company. The creditor can enforce payment through enforcement proceedings. This involves the creditor sending an application to the enforcement authority together with a copy of the court judgment. Bailiffs (that is, deputy bailiffs and district bailiffs) then collect payment from the debtor by force. The legislation concerning enforcement proceedings was revised in its entirety recently by the Enforcement Code (705/2007), which came in force on 1 January 2008 and replaced the previous Enforcement Act (13/1985). Attachment order. If there is a risk that the debtor will hide, transfer or destroy property in a manner that would prejudice the creditor s interest, the creditor can apply to the court for an attachment order. This is a type of freezing order over a sufficient portion of the debtor s assets to cover the creditor s claim. How long it takes. The consents and approvals that are required. The effect on the company, shareholders and creditors. How the procedure is formally concluded. Restructuring Objective. Restructuring proceedings can be used to rescue a viable business or preserve its operations, and to rearrange debts if a company is in financial difficulty (Restructuring of Enterprises Act (47/1993)). The Restructuring of Enterprises Act was recently revised substantially (for example, clarifying the definition of restructuring debt, accelerating the hearings and making the entire proceedings more flexible). Amendments came into force on 1 June This mechanism offers a company with economic problems breathing space to resolve these problems without being declared bankrupt. The court appoints an administrator, who supervises the day-to-day activities and interests of the creditors. Restructuring proceedings can be used not only to rearrange debts, but also to reorganise the organisation, personnel, assets and capital structure of the company. Companies. Restructuring can apply to various types of companies registered in Finland, including limited partnership companies, limited liability companies and housing companies. However, it cannot be used for deposit banks, credit institutions, insurance companies or pension institutions. How, when and by whom. A petition for restructuring can be filed by: the debtor company; a creditor or group of creditors (except any creditors whose claims are contestable or otherwise unclear); or a party likely to experience financial loss because of the company s insolvency, for reasons other than partnership with the company (a probable creditor). The petition for restructuring is filed with a court of first instance. There are currently 14 different district courts that handle restructuring matters. If the company files the petition, it must include a report on the creditors, outstand- 60 CROSS-BORDER HANDBOOKS This chapter was first published in the Cross-border Restructuring and Insolvency Handbook 2009/10 and is reproduced with the kind permission of the publisher,

3 Restructuring and Insolvency 2009/10 Finland ing accounts and the related collateral, as well as a general description of the company s financial position. Effect. The most important effects of restructuring proceedings are that, until the restructuring plan is approved: Substantive tests. The three situations in which restructuring proceedings can be started are where: they do not affect commitments already fulfilled by the company, unless otherwise stated by law; the company and at least two creditors whose aggregate claims represent 20% or more of the known claims file the restructuring petition together; the company cannot pay debts that arose before restructuring proceedings were initiated, nor provide security for such debts; the company is not insolvent but is threatened by imminent insolvency (in this situation, the company, a creditor or a probable creditor must file the restructuring petition); or the company is insolvent (consistently unable to pay its debts as they fall due). If a creditor or probable creditor files the petition (see second bullet point above), it must be shown that restructuring proceedings are necessary to protect substantial financial benefits for the petitioner or to avoid endangering such benefits. How long. The proceedings usually last about 12 months, but implementing the restructuring plan itself may take three to ten years, or even longer. Consents and approvals. The creditors must approve the restructuring plan. Once the court receives the final proposal for the plan, it decides how the creditors are to be divided into groups and which groups are eligible to vote. Secured creditors are divided according to the type of their security rights, with creditors whose claims are secured by a floating charge considered as one group. Unsecured creditors are also divided into groups based on the enforceability of their claims (that is, whether the claim can be collected without first obtaining a court order or not). The creditors eligible to vote are invited to notify the court in writing on or before a fixed date whether they accept or reject the plan proposal (voting statement). The restructuring plan is confirmed if: a majority in each creditor group accepts it; and the total claims of this majority represent more than half of the total claims of all creditors in each creditor group participating in the vote. An approved plan can include provisions less beneficial to creditors than those set out in the Restructuring of Enterprises Act. A restructuring plan can also be approved if the majority of at least one creditor group fulfil the conditions in the two bullet points above and the claims of all creditors who vote in favour represent at least 20% of all the known claims. A plan can be approved in these circumstances if no creditor receives a benefit from the plan beyond the value of its claim, the principle of treating creditors equally is not breached and secured creditors rights are not prejudiced. There is likely to be an obstacle to restructuring proceedings if a creditor would be placed in a better position on a bankruptcy of the company. no measures can be directed at the company to collect debts that arose before restructuring proceedings were initiated, or to ensure that such debts are paid; property cannot be sold by force under enforcement proceedings (see Question 4, Enforcement proceedings). In addition, the company can continue to exercise a right of action in pending legal proceedings or in other procedures to which it is a party, unless the administrator decides to exercise this right of action. The administrator also has the power to make claims and initiate legal proceedings or other procedures on the company s behalf. Conclusion. The restructuring proceedings are officially concluded when the restructuring plan has been approved. After this, the company continues its operations subject to the restructuring plan. If it complies with all the provisions of the plan, the company reverts to its former status. However, if the company substantially breaches the provisions of the plan and does not remedy these breaches within a reasonable time, the administrator or a creditor can apply to the court to terminate the restructuring proceedings. In these circumstances, bankruptcy usually follows. Informal restructuring Objective. The aim of informal restructuring is generally the same as that of formal restructuring proceedings (see above, Restructuring). Informal restructuring involves arrangements made between a company and its creditors with the goal of avoiding bankruptcy. As the procedure is used by all kinds of enterprises and private businesses, its scope of application is comparable to that of formal restructuring and bankruptcies. Additionally, it can be used for the same purposes as formal restructuring (not only to reorganise a company s debts but also its business branches, capital structure and so on). Informal restructuring is usually very difficult to implement and only works if the creditors have sufficient confidence in the company s viability. With both formal and informal restructuring proceedings, the key issues are whether the creditors are willing to give the company an opportunity to continue its business activities through restructuring and whether the financiers will continue doing business with the company. Companies. As these proceedings are informal and based on voluntary arrangements, the law does not limit their scope of application. How, when and by whom. There is no specific legislation on informal restructuring, which is not defined or regulated by statute. Instead, arrangements are governed by relevant civil CROSS-BORDER HANDBOOKS 61 This chapter was first published in the Cross-border Restructuring and Insolvency Handbook 2009/10 and is reproduced with the kind permission of the publisher,

4 Finland Restructuring and Insolvency 2009/10 laws. However, the principles and methods used in informal processes may reflect the underlying principles of formal procedures. For example, the company must usually submit similar financial information to the creditors. The company normally initiates the proceedings. Substantive tests. While there are no formal substantive tests, the creditors do not usually agree to restructuring arrangements unless the company can provide them with sufficient and reliable information on its financial status. They also usually require estimates regarding the company s future economic viability, which point to a need for restructuring proceedings and a positive outcome. How, when and by whom. Bankruptcy proceedings can be initiated by the debtor or by its creditors. The company s directors can decide whether to apply for bankruptcy (Companies Act 624/2006). A creditor can usually file for bankruptcy if it has a valid court judgment against the company (see Question 4). However, a valid claim can also be grounds for a bankruptcy petition. In addition, a creditor can file a bankruptcy petition if the claim is based on a written undertaking signed by the company, and the company has not contested the claim on valid grounds. How long. The length of the proceedings depends on the complexity of the case. Consents and approvals. Only the company and those creditors willing to participate must give their approval. However, in practice, individual creditors are not usually willing to renounce or reduce their claims unless there is a larger overall arrangement, in which most, if not all, of the creditors and financiers agree to reduce their claims correspondingly. In a formal restructuring, minor creditors can often be forced to participate in restructuring proceedings. However, this is not the case in an informal restructuring. As a result, the major creditors must sometimes accept that, while they might be satisfied with a partial payment, some minor creditors may demand full payment from the company. In spite of this, an informal restructuring may still be a better option for major creditors than a formal restructuring or the company s bankruptcy. Effect. The company and its creditors are bound by whatever terms they agree. The directors continue in office unless the company agrees otherwise with its creditors. Conclusion. The procedure is concluded when the terms agreed between the company and its creditors have been implemented. For example, if the only restructuring measure involves the creditors reducing their claims, then the procedure is concluded as soon as these claims have been settled and the company has complied with any related obligations. If the procedure involves reorganising the company s structure, personnel, assets or capital structure, these measures must be implemented to the creditors satisfaction before the procedure can be deemed concluded. Bankruptcy Objective. Bankruptcy proceedings allow creditors claims to be enforced against the company s property (Bankruptcy Act). When bankruptcy proceedings begin, the company forfeits control of its assets. The company s estate is managed by a court-appointed administrator, who realises the assets and uses the proceeds to pay the creditors in the statutory order of payment (see Question 2). Companies. As a general rule, all natural and legal persons can be declared bankrupt, including all types of companies that are registered or incorporated in Finland. However, certain legal entities, including credit institutions and insurance companies, are subject to special provisions that may make them less susceptible to bankruptcy. The state, municipalities and state enterprises cannot be declared bankrupt. A liquidator must apply for bankruptcy if the company s assets cannot satisfy all outstanding claims (see below, Liquidation). Substantive tests. The company must be insolvent (that is, consistently unable to pay its debts as they fall due). Unless proven otherwise, insolvency is presumed if (Bankruptcy Act): the company declares that it is insolvent and there are no special reasons for not accepting that declaration; the company has ceased making payments; enforcement measures (see Question 4, Enforcement proceedings) have taken place in the preceding six months and it has become obvious that the company s assets do not cover the outstanding debts in full; or having received the creditor s request for payment, the company has not paid a valid and due debt within a week. How long. The length of bankruptcy proceedings varies widely. It can take from eight to 12 months if: the company s assets are easily realisable; creditors claims are uncontested; there are no time-consuming recovery claims; and the administrator completes his duties properly. However, bankruptcy proceedings can last for several years and potentially for over a decade if: numerous assets are realised or administered; the creditors claims are contested to a large extent; and recovery claims are made. Bankruptcy proceedings can lapse if there are insufficient assets to cover debts. In this situation, the proceedings conclude soon after the estate inventory and the so-called debtor report (covering information relating to the company and the circumstances that have led to bankruptcy) are drawn up. In this case, the proceedings usually last two to three months as long as a public receivership does not take place (in which a public receiver carries out the bankruptcy proceedings in full). 62 CROSS-BORDER HANDBOOKS This chapter was first published in the Cross-border Restructuring and Insolvency Handbook 2009/10 and is reproduced with the kind permission of the publisher,

5 Restructuring and Insolvency 2009/10 Finland Consents and approvals. If the grounds for bankruptcy exist, the court of first instance declares the company bankrupt. No other consents or approvals are required. Effect. If the court declares a company bankrupt: all creditors are bound by this decision; the administrator appointed by the court takes control of the company and replaces the management; the creditors forfeit their rights to take legal action based on their claims; Although the general principles of liquidation are quite similar despite the type of company involved, the rules described here focus on limited liability companies. How, when and by whom. The general meeting decides to place the company into liquidation regardless of its factual financial status. In some cases, the registration authority can place a company into liquidation (see below, Substantive tests). Substantive tests. As compulsory liquidation was abolished in the new Companies Act, no substantive test for liquidation applies. separate enforcement action is not allowed (there are some exceptions relating to pledgees); The registration authority will place a company into liquidation if: all the creditors outstanding invoices are deemed to fall due. These rules apply even if someone has appealed against the court s decision to declare the company bankrupt. the company does not have a legally competent board of directors recorded in the Trade Register (in this case, the application is filed by the registration authority, a board member, the managing director, a shareholder, a creditor or anyone whose rights are prejudiced); Conclusion. The bankruptcy proceedings are concluded when: the estate has been settled; the assets have been realised; the administrator has drawn up the estate s final account (a report that includes information on the realisation of assets and distribution of funds to the creditors); and the creditors meeting has accepted the final account. Alternatively, the bankruptcy proceedings can be concluded when a composition has been certified by the court in the bankruptcy and where: Liquidation it is supported by the debtor and creditors who hold no less than 80% of the total voting rights and by every creditor holding at least 5% of the total votes; the creditors who have not consented to the composition receive a disbursement at least equal to that which they would have received if the bankruptcy proceedings had continued; and the liabilities of the bankruptcy estate have been paid or covered by sufficient security. Objective. In liquidation, all company s debts are paid and any residue is distributed to the shareholders (Companies Act). Like bankruptcy (see above, Bankruptcy), liquidation is intended to prevent a company from incurring further debts. There is no longer a general obligation requiring a company to file for liquidation, because compulsory liquidation, under the old Companies Act (734/1978), has been abolished. Companies. Liquidation applies to limited liability companies, partnerships, limited partnerships and co-operatives. the company does not have a registered representative as referred to in the Freedom of Enterprise Act (in this case, the application is filed by the registration authority, a board member, the managing director, a shareholder, a creditor or anyone whose rights are prejudiced); in spite of a request from the registration authority, the company s financial statements have not been filed within a year after the end of the accounting year (in this case, the application is filed by the registration authority, a board member, the managing director, a shareholder, a creditor or anyone whose rights are prejudiced); the company has been declared bankrupt and the bankruptcy has lapsed due to lack of funds (in this case, the application is filed by the registration authority, a board member, the managing director, a shareholder, a creditor or anyone whose rights are prejudiced). The court can put a company into liquidation if all the following apply: a shareholder has deliberately abused his position to influence the company; a redemption is the necessary remedy for wronged shareholders in the circumstances; the shareholder abusing his influence is not likely to comply with his duty of redemption; and there are good reasons supporting the wronged shareholders need for relief (in this case, the application is filed by the wronged shareholders). How long. Liquidation proceedings usually last for about four to 12 months. The proceedings can last longer if the company s assets are not easily realisable. CROSS-BORDER HANDBOOKS 63 This chapter was first published in the Cross-border Restructuring and Insolvency Handbook 2009/10 and is reproduced with the kind permission of the publisher,

6 Finland Restructuring and Insolvency 2009/10 Consents and approvals. The general meeting, the registration authority or the court decides when to put a company into liquidation (see above, Substantive tests). Effect. If a company is to be put into liquidation, one or more liquidators must be appointed. The liquidator replaces the board of directors, the managing director and any supervisory board. The liquidator must immediately notify the Trade Register of the liquidation. The liquidator must then, with the help of the board of directors and the managing director, draw up a financial statement for the period preceding the liquidation if deemed necessary (and not covered in any other financial statement to the shareholders), and present this statement to the general meeting. The liquidator must also apply to the registration authority for a public notice regarding the liquidation. The public notice is published in the Official Journal. The liquidator must inform all the company s known creditors in writing of the public notice. As soon as possible, the liquidator must realise the company s assets to the extent necessary to pay the company s debts. The liquidator can carry on the company s business operations only to the extent that this is necessary. If the company s assets are not sufficient to pay all the creditors, the liquidator must apply for bankruptcy. Conclusion. The company is deemed dissolved after its assets have been distributed and the liquidators have presented the financial statement to the general meeting. The Trade Register must be notified of the dissolution without delay, for registration purposes. Liability and transactions A company cannot technically carry out any of the above, and the concept of piercing the corporate veil is not accepted in the Finnish legal system unless explicitly supported by written law. 7. Can transactions that are effected by a company that subsequently becomes insolvent be set aside? The administrator and creditors who have lodged their claims can seek to recover any of the company s assets that were fraudulently or preferentially conveyed before the bankruptcy proceedings began (Act on Recovery to Bankruptcy Estates (1991/758)). Similar rules can also be applied to restructuring, provided that bankruptcy would have been applied instead of restructuring and the transaction could have been subject to recovery in the bankruptcy proceedings. The creditor may seek recovery in restructuring only if the administrator has declined to do so. Actions by the company that can be set aside include transactions such as making a gift in certain circumstances, or giving security and paying a debt either by unusual means, or where the sum is of considerable value in relation to the company s assets. These actions can be reversed if they have taken place within a certain period of time (usually three months) before the petition for bankruptcy proceedings was filed with the court. 8. Please set out any conditions under which a company can continue to carry on business during insolvency or rescue proceedings. In particular: Who has the authority to supervise or carry on the company s business? 6. Are there any circumstances in which a director, parent company (domestic or foreign) or other party can be held liable for the debts of an insolvent company? The directors and the managing director are personally liable to third parties, where damage or loss has resulted from a breach of the provisions of the Companies Act or the company s articles of association (articles) (Companies Act). The liability is not limited to any specific type of damage or loss. Therefore, if a debt is based on damage or loss caused by a director, the director is liable for paying this debt to the relevant third party. Liability can arise throughout a company s lifetime and there are no special provisions relating to insolvency. The company s management can be prosecuted for intentional acts that are detrimental to the creditors interests (Criminal Code (19 December 1889)). Penalties also exist for those who cause or aggravate a company s insolvency by (Chapter 39, Criminal Code): Destroying or giving away its property without valid reason. What restrictions apply? Restructuring During restructuring proceedings, the company can dispose of its property and carry on its business operations. However, the administrator must supervise the company s operations during the proceedings. In addition, the following measures are always subject to the administrator s consent once the proceedings have begun (Restructuring of Enterprises Act): Incurring a new debt, unless it is connected to the company s normal operations, and the amount and terms of the debt are not unusual. Transferring the business of the company in whole or in part. Transferring fixed assets, liquid assets, intellectual property rights, or other rights necessary for the company s operations. Transferring its property abroad to place it beyond the creditors reach. Increasing its debts in a way that is binding. The penalties for these offences are a fine or imprisonment for up to two years. Granting a right of use or any other right to property mentioned in the two bullet points above, unless this is connected with the company s regular operations. Selling or transferring current assets in any other manner than on standard terms and as a part of the company s normal business operations. 64 CROSS-BORDER HANDBOOKS This chapter was first published in the Cross-border Restructuring and Insolvency Handbook 2009/10 and is reproduced with the kind permission of the publisher,

7 Restructuring and Insolvency 2009/10 Finland Terminating agreements that are necessary either for the company s current operations or to ensure its continued operations. Providing security or any other guarantee for a debt of a third party, unless this is connected with the company s regular operations and does not involve unusual risk. Becoming involved in other actions that are unusual or have far-reaching consequences, taking into account the extent and nature of the company s operations. Regulation, primary proceedings opened in the other member states are automatically recognised in Finland; The Nordic Convention. The Nordic Bankruptcy Convention 1933, which has been signed by the Nordic countries Denmark, Finland, Iceland, Norway and Sweden, still applies between the Nordic countries. However, the EC Regulation has replaced the convention between Finland and Sweden. According to the convention, a bankruptcy declared in a Nordic country is recognised in other Nordic countries; Filing a bankruptcy petition with the court. Informal restructuring During these proceedings, the company s management (which, on some occasions, might be changed at the creditors request) retains its usual powers and obligations stated in law and the articles. Depending on the restructuring measures that have been agreed between the company and its creditors, the company can be prohibited from certain operations and undertakings during the restructuring period, such as major investments, security arrangements or other ventures. Bankruptcy In bankruptcy, the administrator (who has replaced the company s management) can continue business activities to the extent that is permitted by the meeting of creditors. The creditors have the ultimate power to decide how the company s unencumbered assets are used and realised, and how business operations will continue. The administrator must always act for the benefit of all creditors. Liquidation After a company has been put into liquidation, the liquidator (who has replaced the company s management) can continue business operations only to the extent that this is necessary. Other countries. In general, other foreign insolvency procedures are not recognised and have no legal effects in Finland. However, it is possible to begin separate proceedings in the district courts to obtain recognition of a foreign judgment or the equivalent of a judgment. Concurrent proceedings. There is no specific legislation governing the courts co-operation where concurrent proceedings take place in other jurisdictions. As a result, such co-operation is based on the courts individual practices. International treaties. There are no current plans to implement the UNCITRAL Model Law on Cross-Border Insolvency 1997 into national legislation. Special procedures for foreign creditors. Foreign creditors are treated in the same way as domestic creditors. Proposed reforms 10. Are there any proposals for reform to insolvency law in your jurisdiction? Currently there are no pending proposals for reform to insolvency law in Finland. International cases 9. Please state whether: Courts in your jurisdiction recognise insolvency and rescue procedures in other jurisdictions. Courts co-operate where there are concurrent proceedings in other jurisdictions. There are any international treaties relating to insolvency to which your jurisdiction is a signatory. There are any special procedures that apply to foreign creditors. contributor details Pauliina Tenhunen, Ville Ahtola and Anna-Kaisa Nenonen Castrén & Snellman Attorneys T F E W Recognition. The following procedures are recognised: The EC Regulation. Regulation (EC) No. 1346/2000 on insolvency proceedings (Insolvency Regulation) has applied since 31 May Under the Insolvency CROSS-BORDER HANDBOOKS 65 This chapter was first published in the Cross-border Restructuring and Insolvency Handbook 2009/10 and is reproduced with the kind permission of the publisher,

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