Publication Type

Blog Post

Version

acceptedVersion

Publication Date

9-2023

Abstract

The UNCITRAL Model Law on Cross-Border Insolvency (“MLCBI”) turned 26 years in 2023. During this period, it has been adopted in more than 60 jurisdictions around the world and it has significantly contributed to successful management of insolvency proceedings with a cross-border element. Therefore, the MLCBI is an achievement that the international insolvency community needs to celebrate. The MLCBI is built on the idea of “modified universalism”. Therefore, it envisions the commencement of a main procedure in a single jurisdiction even if non-main proceedings can also be opened and the laws of other jurisdictions can still be relevant for certain aspects of the procedure. Once the procedures are opened, the MLCBI establishes a set of rules to facilitate cooperation and assistance for the successful management of the procedures. In our view, the adoption of modified universalism as a regulatory model to deal with cross-border insolvency is a sensible one. Indeed, against those favoring the adoption of a more fragmented (or “territorialist”) approach, we believe that the existence of a centralized procedure is a superior option. We also believe that the type of cooperation and assistance facilitated by the MLCBI significantly improves the efficiency and effectiveness of insolvency proceedings in cases where the debtor has assets, creditors and operations in various jurisdictions. Therefore, any future reforms and developments in the area of cross-border insolvency promoted by UNCITRAL should keep moving in that direction.

Discipline

Bankruptcy Law | Business Organizations Law | International Law

Research Areas

Corporate, Finance and Securities Law

Copyright Owner and License

Authors

Additional URL

https://ccla.smu.edu.sg/sgri/blog/2023/09/14/towards-new-approach-choice-insolvency-forum

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