Originally from European International Arbitration Review

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I. Introduction

Insolvency has very aptly been described as a “crossroad where all the elements of the Legal System in question meet.”3 Following the global financial and economic crisis, the traffic at this crossroad has been increasing over the last decade. That is reflected in the fast growing legal literature addressing the regulation of this traffic as far as it concerns the relationship between arbitration and insolvency, both at the national as well as at the international level.4 In some jurisdictions and on the European level the increased traffic at the crossroad has also led to a revision of the legal framework and the erection of clearer signposts at the crossroad, for example in the recast European Insolvency Regulation.5 Irrespective of that there is still a considerable danger of accidents for unwary parties and arbitrators.6 In this regard one has to distinguish between the core insolvency disputes on the one hand and insolvency related disputes of single creditors about the existence of their claims or the extent of the divisible property on the other hand. The former disputes go to the heart and the administration of the insolvency proceedings as proceedings for collective redress.