Legal framework

Legislation

What is the primary legislation governing insolvency and restructuring proceedings in your jurisdiction?

The main Swedish laws relating to insolvency are:

  • the Company Reorganisation Act (SFS 1996:764);
  • the Bankruptcy Act (SFS 1987:672);
  • the Rights of Priority Act (SFS 1970:979);
  • the Companies Act (SFS 2005:551);
  • the Partnership and Non-registered Partnership Act (SFS 1980:1102);
  • the Economic Associations Act (SFS 1987:667);
  • the Debt Clearance Act (SFS 2016:675); and
  • the Debt Clearance Act Regarding Business (SFS 2016:676).

Due to Sweden’s EU membership, a number of EU regulations are applicable in Sweden.

Regulatory climate

On an international spectrum, is your jurisdiction more creditor or debtor friendly?

The Swedish regulation has traditionally focused on insolvent liquidation (bankruptcy), which can be considered a creditor-friendly regulation because creditors take control of debtors’ assets via the bankruptcy estate represented by the Bankruptcy Act liquidator. However, the jurisdiction is becoming more debtor friendly, as demonstrated by the Company Reorganisation Act which includes provisions that protect the debtors’ interest in continuing to run the business (debtor in possession). 

Sector-specific regimes

Do any special regimes apply to corporate insolvencies in specific sectors (eg, insurance, pension funds)?

In general, all debtors fall under the same regulations in insolvency matters. However, there are a few exceptions (eg, the Companies Reorganisation Act does not apply on credit market companies).

Reform

Are any reforms to the legal framework envisaged?

In October 2016 the Entrepreneurship Committee submitted an official report to the government (SOU 2016:72), in which it proposed major amendments to the Company Reorganisation Act (SFS 1996:764). It is difficult to predict the extent to which the committee’s proposals will be accepted by the government, as it will depend mainly on the contents of the upcoming EU Directive on Restructuring Frameworks and Other Matters. The government has proposed a new priority class in the Rights of Priority Act (SFS 1970:1102) in accordance with the EU Directive 2017/2399. If accepted by Parliament, the proposal will introduce a new priority right for claims resulting from debt instruments where the original contractual maturity of the debt instrument is of at least one year.

 

Director and parent company liability

Liability

Under what circumstances can a director or parent company be held liable for a company’s insolvency?

There is no specific statutory obligation for directors or a parent company to file for an insolvency proceeding (company reorganisation or bankruptcy) when the company is insolvent.

However, failure to file for an insolvency proceeding can lead to the directors becoming personally liable for due taxes according to the Tax Procedure Act (SFS 2011:1244).

If the debtor is a company limited by shares, and the company is under-capitalised according to Chapter 25 of the Companies Act, it can lead to personal liability for directors if certain steps stipulated in the act are not taken. A company is considered to be under-capitalised when its equity is less than half of the registered share capital.

Defences

What defences are available to a liable director or parent company?

The available defence against a liability for due taxes under the Tax Procedure Act is to file for formal insolvency proceedings (company reorganisation or bankruptcy) at the latest on the due date for the tax.

The available defences against liability for a company’s new debts when the company is under-capitalised include:

  • taking, depending on the circumstances, certain stipulated steps in Chapter 25 of the Companies Act (eg, convene a general meeting for considering whether the company will continue running its business or go into solvent liquidation (not to be confused with bankruptcy, which is insolvent liquidation under the Bankruptcy Act));
  • filing for a solvent liquidation proceeding under the Companies Act; and
  • presenting at a general meeting a control balance sheet, reviewed by the company’s auditor, which shows that on the date of the meeting the company’s equity amounted to at least the registered share capital.

Due diligence

What due diligence should be conducted to limit liability?

A company director must keep informed at all times of the company’s financial situation in order to be able to take relevant protective actions under the Tax Procedure Act and Chapter 25 of the Companies Act.

Position of creditors

Forms of security

What are the main forms of security over moveable and immoveable property and how are they given legal effect?

In general, security can be taken over most types of asset provided. It is not possible to create security over all or substantially all of the assets of a particular company under a single all-asset-encompassing security document; hence, security must be taken on an asset-by-asset basis.

Ranking of creditors

How are creditors’ claims ranked in insolvency proceedings?

The statutory waterfall of claims according to the Rights of Priority Act mainly consists of:  

  • specific priorities;
  • general priorities, which are distributed in the following order:
    • certain administrative bankruptcy costs, fees to the administrator of a company reorganisation (if applicable), certain costs incurred during a company reorganisation, claims based on agreements which the creditor has entered into during a company reorganisation, resolution fees payable to the National Debt Office for a period of six months prior to the application for bankruptcy or thereafter and other claims based on agreements which the creditor entered into with the consent of the National Debt Office or a special administrator under a resolution according to the Resolution Act;
    • fees for statutory audits and the audit of statutory accounts, to the extent that such fees are incurred six months prior to the application for bankruptcy;
    • certain claims by employees for salary or other compensation based on work (subject to a cap per employee);
    • certain claims for future pension (now redundant, as it covers only persons born in 1907 or before);
    • guaranteed deposits under the Resolution Act; and
    • qualified deposits under the Resolution Act which are not guaranteed thereunder and are made:
      • by natural persons;
      • by microenterprises and small and medium-sized enterprises; and
      • through a branch of a Swedish institution outside the European Economic Area and which would have been regarded as deposits had they not been made through the branch;
  • unsecured claims; and
  • subordinated claims.

There is quite a wide range of both specific and general rights of priority to payment which apply in bankruptcies. A right of priority to payment may be specific or general. Specific priority relates to specific property. General priority relates to all property in the debtor’s estate. A specific right of priority normally has precedence over a general right of priority and a right of priority normally also covers interest which may accrue on a claim.

Examples of important specific priorities include:

  • priorities attached to maritime and aircraft liens;
  • international interests in aircraft and aircraft engines which are registered in a certain way; and
  • pledges and rights to retain possession of personal property as security for a debt (possessory liens).

Rights of priority in movable property (other than cash-at-hand and bank deposits, shares and other tradeable financial instruments and securities) of a company’s business are usually taken by way of a pledge of business mortgage certificates (limited floating charge). Right of priority in real estate is taken by way of a pledge of mortgage certificates.

Examples of important general priorities include:

  • priorities attached to a creditor’s costs incurred in having the debtor placed into bankruptcy;
  • fees and reimbursement for costs to an administrator pursuant to the Company Reorganisation Act;
  • claims based on agreements entered into by the debtor with the administrator’s consent during a company reorganisation pursuant to the Company Reorganisation Act;
  • claims for compensation for the performance of auditing;
  • claims for work involved in the preparation of accounting records in the performance of accounting obligations;
  • employees’ claims for wages; and
  • other compensation arising from employment.

Claims which are not entitled to any right of priority have equal rights. However, pursuant to the claim agreement under which a claim arose, the creditor may be first entitled to payment after the other creditors. Where a claim is entitled to a specific right of priority with respect to certain property, but the property does not suffice to pay the entire claim, the balance of the claim will be treated as a claim without any right of priority. Fines, conditional fines and claims based on forfeiture or other special legal consequences of a crime receive a dividend only if all other claims are fully paid.

Deposit insurance is a state-provided guarantee of deposits in all types of account at banks, credit market companies and investment firms (institutions) with a licence to accept deposits. If an institution is declared bankrupt, the insurance provides compensation of up to Skr950 000 per depositor in Sweden.

Can this ranking be amended in any way?

No, the ranking order cannot be amended with binding effect on creditors who do not accept the amendment.

Foreign creditors

What is the status of foreign creditors in filing claims?

Foreign creditors have the same status as Swedish creditors. The nationality of the creditor does not affect the order of priority.

Unsecured creditors

Are any special remedies available to unsecured creditors?

No, they have the same remedies as other creditors. However, out-of-court workouts and restructurings and formal company reorganisations under the Company Reorganisation Act are binding only on unsecured creditors.

Debt recovery

By what legal means can creditors recover unpaid debts (other than through insolvency proceedings)?

A creditor can make an application to the Enforcement Authority. If the claim is not disputed, the authority can issue a payment order. If payment is not made, it can enforce the order by way of execution in the debtor’s assets.

Is trade credit insurance commonly purchased in your jurisdiction?

Yes, it happens, but normally creditors have no creditor insurance.

Liquidation procedures

Eligibility

What are the eligibility criteria for initiating liquidation procedures? Are any entities explicitly barred from initiating such procedures?

There are two liquidation procedures in Sweden:

  • voluntary or involuntary solvent liquidation under the Companies Act (winding up); and
  • voluntary or involuntary insolvent liquidation (bankruptcy) under the Bankruptcy Act (SFS 1987:672).

This often leads to confusion. When Swedish lawyers refer to liquidation they often mean solvent liquidation under the Company Act, but when foreign lawyers refer to liquidation they often mean insolvent liquidations which are regulated under the Swedish Bankruptcy Act.

Procedures

What are the primary procedures used to liquidate an insolvent company in your jurisdiction and what are the key features and requirements of each? Are there any structural or regulatory differences between voluntary liquidation and compulsory liquidation?

The first step in an insolvent liquidation proceeding (bankruptcy) is the filing of an application in the court in which the debtor has been declared bankrupt. The application can be made by a creditor or by the debtor.

How are liquidation procedures formally approved?

The second step in an insolvent liquidation proceeding (bankruptcy) is that the court decides on the application for bankruptcy. 

What effects do liquidation procedures have on existing contracts?

There is no automatic effect on existing contracts. However, the other party to the contracts often sends a notice for termination to the Bankruptcy Act liquidator based on the court’s decision to declare the debtor bankrupt.

What is the typical timeframe for completion of liquidation procedures?

It varies considerably. Normally, an insolvent liquidation proceeding (bankruptcy) can be completed within one to three years of the court’s decision to declare the debtor bankrupt.

Role of liquidator

How is the liquidator appointed and what is the extent of his or her powers and responsibilities?

A Bankruptcy Act liquidator is not to be confused with a Companies Act liquidator.

A Bankruptcy Act liquidator is appointed by the court when a debtor is declared bankrupt. A Bankruptcy Act liquidator manages the assets in the bankruptcy estate. In principle, all assets of the debtor become part of the estate. A Bankruptcy Act liquidator will sell the assets and distribute money to the creditors after the bankruptcy costs have been covered. Another role of a Bankruptcy Act liquidator is to investigate if the debtor has a civil law liability or criminal liability for actions taken or not taken before the debtor was declared bankrupt.

Court involvement

What is the extent of the court’s involvement in liquidation procedures?

The court’s involvement is limited after the debtor has been declared bankrupt. Nearly all decisions of substance are taken by the Bankruptcy Act liquidator.

Creditor involvement

What is the extent of creditors’ involvement in liquidation procedures and what actions are they prohibited from taking against the insolvent company in the course of the proceedings?

The Bankruptcy Act liquidator will consult with major creditors and the Supervisory Authority in Bankruptcies before any important decisions are taken. The Supervisory Authority in Bankruptcies is a government authority which supervises the management of all bankruptcy estates. There is an automatic stay of all enforcement actions when the debtor has been declared bankrupt.

Director and shareholder involvement

What is the extent of directors’ and shareholders’ involvement in liquidation procedures?

The directors and shareholders involvement mainly consists of providing relevant information to the Bankruptcy Act liquidator. The directors are not permitted to dispose the assets in the bankruptcy estate, and the bankrupt company (a separate legal entity not to be confused with the bankruptcy estate) usually has no assets because the assets are automatically transferred to the bankruptcy estate when the company is declared bankrupt.

Restructuring procedures

Eligibility

What are the eligibility criteria for initiating restructuring procedures? Are any entities explicitly barred from initiating such procedures?

In general, the Company Reorganisation Act (SFS 1996:764) applies to all types of subject, natural person and legal entity. However, the Company Reorganisation Act does not apply to:

  • banking companies, savings banks or member banks;
  • credit market companies;
  • insurance companies;
  • securities companies;
  • clearing organisations and central securities depositories; and
  • financial institutions or holding companies which have been resolved pursuant to the Resolution Act (SFS 2015:1016).

The Company Reorganisation Act does not apply to such debtors over whose business the state, a municipality, a county council, a municipal association, a parish or Church of Sweden organisation has a controlling influence.

Procedures

What are the primary formal restructuring procedures available in your jurisdiction and what are the key features and requirements of each?

Company reorganisation under the Company Reorganisation Act, is the only available formal in-court restructuring procedure.

Illiquidity, or risk of illiquidity, is the entry criteria for company reorganisation. ‘Illiquidity’ is defined as inability to pay due debts. ‘Risk of illiquidity’ is defined as the inability to pay debts that will become due within a short time.

An application for company reorganisation is made to a court of general jurisdiction. If the court decides that the company is entitled to commence a company reorganisation procedure, an administrator is appointed to assist the company. The administrator will notify all known creditors about the order and inform the creditors about the procedure and how the business will be reorganised.

Following a request by the debtor, the court may order the commencement of proceedings for judicial composition, which is a certain formal procedure within a company reorganisation procedure under the Company Reorganisation Act. When such a request is made, the debtor will present a composition proposal offering a minimum payment of at least 25% of each unsecured and unprivileged (no priority) claim. A lower percentage can be used if it is accepted by all unsecured and unprivileged creditors or by the court.

According to the Bankruptcy Act (SFS 1987:672), a debtor has the opportunity to present a composition proposal to the creditors during the bankruptcy proceedings. In practise, this bankruptcy composition procedure is never applied.

How are restructuring plans formally approved?

A composition is not a mandatory part of a Swedish company reorganisation, but it is often crucial for the success of the reorganisation. The composition proposal must be accepted by a certain percentage of the creditors holding a certain amount of the total debts, depending on what composition percentage the debtor has offered. The vote takes place at a creditors meeting before the court.

A composition proposal which yields at least 50% of the amount of the claim will be deemed accepted by the creditors where 60% of the creditors and their claims amount to 60% of the total amount of claims held by creditors entitled to vote.

A composition proposal which yields  less than 50% of the amount of the claim will be deemed accepted by the creditors where 75% of the creditors and their claims amount to 75% of the total amount of claims held by creditors entitled to vote.

If the creditors have approved the composition proposal, the court will make its own independent assessment of whether the composition will be confirmed. A composition that has been confirmed is thereafter binding on all creditors who were entitled to participate in the composition proceedings. 

What effects do restructuring procedures have on existing contracts?

In general, a company reorganisation does not affect existing contracts. The creditors are not allowed to terminate contracts based only on the decision to commence the company reorganisation agreement.

What is the typical timeframe for completion of restructuring procedures?

The duration of a company reorganisation is limited to three months, but the court may, on request by the debtor, extend the company reorganisation by up to a further four additional three-month periods, up to a maximum total of 12 months. Approximately two-thirds of all company reorganisations fail and the companies are declared bankrupt. Failure often happens when the reorganisation proceeding are still pending in court. 

Court involvement

What is the extent of the court’s involvement in restructuring procedures?

The court is competent for all main decisions and decides on:

  • the opening of the proceedings;
  • the appointment of the administrator and any creditors’ committee;
  • any extension of the company reorganisation;
  • the commencement of proceedings for judicial composition; and
  • the closing of the proceedings.

Creditor involvement

What is the extent of creditors’ involvement in restructuring procedures and what actions are they prohibited from taking against the company in the course of the proceedings?

A creditor can apply for company reorganisation; however, this never happens in practise because the application is approved only if the debtor agrees. The creditors can also, at their own request to the court, participate by the appointment of a creditors’ committee. Primarily, creditors’ involvement lies in the vote for a composition proposal, if such a proposal is presented.

During the period in which the company reorganisation is pending, no levy execution or other enforcement measures pursuant to Enforcement of Judgments Code (SFS 1981:774) may take place in respect of the debtor.

Under what conditions may dissenting creditors be crammed down?

A composition proposal is, once accepted by the required majority of creditors and ratified by the court, binding on dissenting unsecured and unprivileged creditors. Secured creditors and creditors with a priority cannot be crammed down and must always be paid in full.

Director and shareholder involvement

What is the extent of directors’ and shareholders’ involvement in restructuring procedures?

The debtor is still in possession and therefore the directors, and often the shareholders, remain highly involved. The directors are obliged to provide the administrator with all information regarding the company’s financial position and other circumstances of relevance to the reorganisation. The debtor is obliged to comply with the administrators’ instructions regarding the manner in which the business will be conducted. However, actions taken by the debtor without the approval of the administrator remain legally valid.

The shareholders have no formal involvement in the restructuring procedures, but their financial support is often necessary for the restructuring to be successful.

Informal work-outs

Are informal work-outs available for distressed companies in your jurisdiction? If so, what are the advantages and disadvantages in comparison to formal proceedings?

Informal work-outs for distressed companies are available in Sweden and are considered preferable to the formal proceedings of company reorganisation or bankruptcy. Stakeholders see informal work-outs as a way to preserve value because of less negative publicity when the business is continued as a going concern with the same directors still representing the company.

When applying informal work-outs there is no formal requirement to treat all creditors equally, which means more flexibility regarding the formal proceedings of company reorganisation. However, during informal work-outs, the creditors are not obliged to negotiate with the debtor and cannot be crammed down. 

Transaction avoidance

Setting aside transactions

What rules and procedures govern the setting aside of an insolvent company’s transactions? Who can challenge eligible transactions?

Chapter 4 of the Bankruptcy Act regulates the avoidance of transactions (an action for avoidance is also described as recovery and clawback). The most important provisions are:

  • Section 5 regarding unfair legal acts;
  • Section 6 regarding gifts and transactions for inadequate counter-value;
  • Section 10 regarding payments of debts; and
  • Section 12 regarding late perfection of security.

Proceedings for avoidance are normally initiated by the Bankruptcy Act liquidator. However, if the liquidator does not wish to initiate such proceedings and cannot settle the matter, a creditor may initiate an avoidance proceeding in court.

The length of the look-back period varies. When applying the provision for unfair legal acts in Chapter 4(5), the look-back period is limitless for insiders and five years for others. When applying the provision for gifts in Chapter 4(6), the look-back period is three years for insiders and one year for others. When applying provision for debt payments in Chapter 4(10) or the provision for late perfection of security in Chapter 4(12), the look-back period is two years for insiders and three months for others.  

An administrator in a company reorganisation or a creditor in such reorganisation can also, under certain conditions, commence an avoidance proceeding in court. In practice, however, this never happens. If an avoidance proceeding can increase the assets, and in consequence also increase the distribution to creditors, and a settlement with the benefitted party cannot be reached, it is preferable to terminate the reorganisation and file for bankruptcy and let the Bankruptcy Act liquidator initiate a transaction avoidance proceeding.   

Section 5, unfair legal acts (actio pauliana) The prerequisites are that:

  • the avoidance action concerns a legal act;
  • the legal act was unfair;
  • the legal act was to the immediate or indirect detriment of the creditors;
  • the debtor was insolvent or became insolvent;
  • the other party knew or ought to have known of the insolvency and the circumstances making the legal act unfair; and
  • the legal act was made within the look-back period (which is limitless for insiders and five years for others).

This provision is often relied on by the claimant, which is normally the Bankruptcy Act liquidator representing the bankruptcy estate. The term ‘legal act’ is construed very broadly and includes, for example, payments, gifts and agreements. If the legal act took place more than five years before the day of grace (normally the day when the petition for bankruptcy was filed), the legal act can be set aside only if the respondent is related to the debtor (ie, an insider). The claimant must prove that all prerequisites for avoidance are applicable in the case at hand. The respondent often objects that the legal act did not take place when the debtor was insolvent (or that the debtor did not become insolvent as a result of the legal act) and that the respondent did not know or ought to have known of the possible insolvency and the circumstances making the legal act unfair.

In a 2017 Supreme Court judgment, a company with liquidity problems of more than one year’s duration prior to bankruptcy was deemed not to have been insolvent in the eyes of a creditor that was paid a short time before the bankruptcy (NJA 2017, page 882). This judgment may make Bankruptcy Act liquidators to consider carefully whether to bring avoidance actions based only on Section 5. 

Section 6, avoidance of gifts and transactions at undervalue The prerequisites are that:

  • the avoidance action concerns a gift or transaction for inadequate counter-value;
  • the gift was to the immediate detriment of the creditors; and
  • the gift was made within the look-back period (three years for insiders and one year for others). 

Section 6 is usually quite easy to apply. One objection that can be difficult for the claimant to handle is that the transaction cannot be regarded as a gift because the debtor made the transaction (prima facie at undervalue) for good business reasons, hoping to have a profitable business relationship with the done and which failed to occur for reasons unconnected to the transaction. 

Section 10, payment of debt The prerequisites for the application of Section 10 are that:

  • payment has been made of an antecedent (old) debt;
  • the payment was made
    • with something other than customary means of payment;
    • prematurely; or
    • in an amount that has considerably caused deterioration of the financial position of the debtor;
  • the payment was not made in the ordinary course of business;
  • the payment was to the detriment of the creditors; and
  • the payment was made within the look-back period (two years for insiders and three months for others).  

This is the avoidance provision that is used most often. It has been clarified in case law that an amount has caused considerable deterioration when the amount paid was higher than 10% of the value of the debtor’s assets at the time that the debtor was declared bankrupt. The meaning of the prerequisite that the payment was made outside ‘ordinary course of business’ is often in dispute. The relevant test is whether the payment deviated from previous payment patterns between the parties. If there is a deviation, the payment cannot be considered ordinary.

Section 12, late creation of security The prerequisites for the application of Section 12 are that:

  • the avoidance action concerns the transfer of a security;
  • the security was not:
    • agreed on when the debt arose; or
    • perfected without delay after the debt arose;
  • the security was not created in the ordinary course of business;
  • the security was to the detriment of creditors; and
  • the security was perfected within the look-back period (two years for insiders and three months for others).

The prerequisites for application of this provision are usually easy to apply. The prerequisite that the security was created in the ordinary course of business protects factoring agreements and other similar agreements where there is a continuous flow of new financing and new security.

Operating during insolvency

Criteria

Under what circumstances can a company continue to conduct business during an insolvency procedure?

Companies that have been declared bankrupt are not allowed to conduct any business. The bankruptcy estate is allowed to continue the business for up to one year. Normally the business is discontinued after one month when the wage guarantee can no longer be used.   

In a formal in-court company reorganisation the debtor is in possession and the business is, with a few exceptions, continued by the company.  

Stakeholder and court involvement

To what extent are relevant stakeholders (eg, creditors, directors, shareholders) and the courts involved in any business conducted during an insolvency procedure?

Only the bankruptcy estate represented by the Bankruptcy Act liquidator can conduct business during the bankruptcy.   

The business, with a few exceptions, is continued during a company reorganisation.

The shareholders have no formal involvement in the restructuring procedures, but financial support from the shareholders is often necessary for the restructuring to be successful.

Financing

Can an insolvent company obtain further credit or take out additional secured loans during an insolvency procedure?

Companies that have been declared bankrupt cannot in practice obtain further credit because a bankrupt company has no assets. A debtor is not considered bankrupt in a legal sense before the court has declared the debtor bankrupt. The court declares the debtor bankrupt in the court’s decision to open a bankruptcy proceedings. Such a debtor can, however, be considered as insolvent even if a court has not declared the debtor insolvent. The assets are automatically (ipso jure) transferred to the bankruptcy estate when the company is declared bankrupt.

During a company reorganisation an insolvent company can obtain further credit or additional loans.  These actions require the consent of the administrator but are, however, still legally valid if such consent is missing. In cases where the administrator has approved, the creditor obtains a super priority right, which gives the creditor priority rights in an eventual bankruptcy if the reorganisation fails. 

Employees

Effect of insolvency on employees

How does a company’s insolvency affect employees and the company’s legal obligations to employees?

In general, a company’s insolvency does not affect the company’s legal obligations to its employees.  Employment contracts are not automatically terminated. The bankruptcy estate represented by the Bankruptcy Act liquidator steps into the position of the employer. The government employees outstanding claims resulting from contracts of employment or employment relationships are with certain limitations paid through a government wage guarantee.

Cross-border insolvency

Recognition of foreign proceedings

Under what circumstances will the courts in your jurisdiction recognise the validity of foreign insolvency proceedings?

The European Insolvency Regulation regulates recognition of insolvency proceedings in another member state. Sweden is also bound by the Convention with Denmark, Finland, Island and Norway regarding insolvent liquidations (bankruptcies) (7 November 1933). Regarding relations between Sweden and Finland, the European Insolvency Regulation has replaced the 1933 Nordic Convention (see Article 85.1(j) of the regulation).

Winding up foreign companies

What is the extent of the courts’ powers to order the winding up of foreign companies doing business in your jurisdiction?

This is regulated in Article 1 of the European Insolvency Regulation. Sweden has no regulation for the winding up of companies from a state which is not an EU member state.

Centre of main interests

How is the centre of main interests determined in your jurisdiction?

This is regulated in Article 1 of the European Insolvency Regulation, as interpreted by the European Court of Justice.

Cross-border cooperation

What is the general approach of the courts in your jurisdiction to cooperating with foreign courts in managing cross-border insolvencies?

The general approach of the Swedish courts is positive when they are requested to cooperate with foreign courts.