Following the EU Insolvency Regulation Nr. 2015/848 (the “Regulation”) coming into force, the Hungarian legislator has accordingly amended the Hungarian Insolvency Code (the “Code”) with effect from 28 October 2017.
After the commencement of a main insolvency procedure in another Member State, the foreign insolvency practitioner or the debtor (having power of disposition) is entitled to (or obliged to if the debtor has a place of business in Hungary) request from the Hungarian court that the foreign decree launching the main insolvency procedure is published. Furthermore, if the debtor has real estate in Hungary, registration into the land registry must be requested as well.
Examples of new rules dealing with the situation of conflicting proceedings are the rejection of starting main insolvency (or a group coordination proceeding) in Hungary, should such proceedings already have started in another Member State, or the modification of a Hungarian main proceeding into secondary proceedings.
The Code introduced detailed rules for a situation where either a Hungarian or a foreign insolvency practitioner issues an undertaking to avoid secondary proceedings. The undertaking of a Hungarian insolvency practitioner should be approved by the Hungarian court before sending it to the creditors, and the procedure of having an undertaking issued by a foreign insolvency practitioner approved by the local creditors in Hungary is described in detail (leaving, however, much space for interpretation in concrete cases).
A unified form for reporting foreign creditors’ claims and a new insolvency register will be established by 26 June 2018.