Article 48

Authority competent to initiate insolvency proceedings and applicable law

The provisions of articles 41 and 47 hereof shall remain in full force and effect where an entity declared insolvent, even the parent company, is part of a group of companies.

Article 49

Recognition of more than one set of insolvency proceedings affecting each entity in a group of entities declared insolvent

1. Should a group of companies have entities in more than one State or territory, the authorities of the State in which the center of main interests of the entity to be declared insolvent is located, shall be competent to initiate insolvency proceedings in accordance with the applicable law. However, where an abuse of legal personality is determined in accordance with article 35 et seq. hereof, the parent company shall undergo a single set of insolvency proceedings, without prejudice to the exceptional recognition of secondary proceedings for the entity declared insolvent under article 43.

2. None of the foregoing provisions shall affect or impair the mandatory coordination and collaboration between competent authorities in the various States or territories, or the work of the court-appointed administrators, having regard to the protection of the interests of the creditors and the preservation of the assets of each of the entities declared insolvent which belong to the same group of entities.

3. In particular, the closing of secondary proceedings concerning an entity not deemed to be the parent company, by means of a recovery plan, arrangement between creditors, liquidation or any similar measure, shall give precedence to the interests of the parent entity and its group of entities. Consequently, the views of the decision-making body of the parent entity, or of its court-appointed administrator if it was declared insolvent, shall in any event be heard. They may also oppose or appeal, by using any remedies available under the law applicable to the proceedings concerning the entity distinct from the parent entity, any decision to close the proceedings which they may regard as not being best adapted to the interests of the entity declared insolvent, and as causing prejudice to the parent company or other entities in the group.