Effects when the UNCITRAL Model Law (implemented by the Cross-Border Insolvency Regulations) applies

The following Restructuring & Insolvency practice note provides comprehensive and up to date legal information covering:

  • Effects when the UNCITRAL Model Law (implemented by the Cross-Border Insolvency Regulations) applies
  • Objectives
  • Effects of the Cross-Border Insolvency Regulations 2006 (CBIR)
  • Automatic stay and applications to lift the stay
  • Co-operation and co-ordination
  • Foreign creditors
  • All creditors

Effects when the UNCITRAL Model Law (implemented by the Cross-Border Insolvency Regulations) applies

From IP completion day (11pm on 31 December 2020), despite the trade deal, the Insolvency (Amendment) (EU Exit) Regulations 2019, SI 2019/146 kick in and amend both the Regulation (EU) 2015/848 (OJ L141/19), Recast Regulation on Insolvency [EU Recast Regulation on Insolvency] and various other legislation including the CBIR (see News Analysis: Brexit impact on Cross-Border Insolvency Regulations 2006 (CBIR 2006) and Practice Note: Brexit—impact on Recast Regulation on Insolvency).

Objectives

The UNCITRAL Model Law on cross-border insolvency's (the UNCITRAL Model law) preamble lists the following objectives:

  1. co-operation between the courts and other competent authorities of this state and foreign states involved in cases of cross-border insolvency

  2. greater legal certainty for trade and investment

  3. fair and efficient administration of cross-border insolvencies that protects the interests of all creditors and other interested persons, including the debtor

  4. protection and maximisation of the value of the debtor’s assets

  5. facilitation of the rescue of financially troubled businesses, thereby protecting investment and preserving employment

It aims to respect differences between the countries and doesn't seek to harmonise laws, so focuses on procedure rather than substance. It was quickly realised that attempting to harmonise the diverse insolvency laws of countries across the world would be a step too far, so substantive law is left to the domestic law of the enacting

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