Parmalat insolvency dispute heads for ECJ
A tug-of-war between Irish and Italian insolvency practitioners over a Parmalat subsidiary has been referred to the European Court of Justice.
Link: Parmalat special report
The dispute focuses on competing claims for jurisdiction in the insolvency of Eurofood, the Italian dairy group?s Irish unit, but could have repercussions far beyond the emerald isle.
Parmalat’s administrator, Enrico Bondi, and the Irish provisional liquidator Pearse Farrell, are disputing each other’s appointments. The argument turns on the location of Eurofood’s ‘centre of main interest’ – a prerequisite to the establishment of primary insolvency proceedings.
Italian and Irish courts first backed the claims of their own nationals, prompting the Irish Supreme Court to pass the matter to Luxembourg to break the deadlock. The case could now become a landmark in the evolution of the EU’s cross-border insolvency regulations.