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31/10/2011

Media Statement: Government opts out of EAPO and threat to rescue culture

“R3 is pleased to learn of today’s announcement that Britain will opt out of plans to introduce a European Account Preservation Order (EAPO). R3 had repeatedly warned of the threat to the UK’s rescue culture over the plans.


“Although they were designed to make it easier to recover debts in cross-border cases, in practice the plans would give courts anywhere in the EU power to freeze funds in UK businesses’ banks accounts without warning. The rigorous checks and balances over the validity of the claim that we have in the UK were sorely missing from the proposals. We are pleased this threat to the UK’s rescue culture has been recognised by today’s decision.


“R3 has been liaising closely with officials, stakeholders, and MPs to highlight the negative implications of the plans - opting out of EU Regulations is a significant move. R3 is proud to have played our part in averting the introduction of a Regulation that would have had such a detrimental impact on business rescue through insolvency and restructuring.”

Frances Coulson, President of R3, the insolvency trade body

Ministerial Statement here: http://www.parliament.uk/documents/commons-vote-office/5.Justice-EU-proposal-creating-a-European-Account-Preservation-Order.pdf

 


R3 Press Office

Notes to editors:

  • R3 is the trade body for Insolvency Professionals and represents the UK’s Insolvency Practitioners.

  • R3 comments on a wide variety of personal and corporate insolvency issues. Contact the press office, or see www.r3.org.uk for further information.

  • R3 promotes best practice for professionals working with financially troubled individuals and businesses; all R3 members are regulated by recognised professional bodies
     
  • R3 stands for 'Rescue, Recovery, and Renewal' and is also known as the Association of Business Recovery Professionals.