The following Restructuring & Insolvency guidance note provides comprehensive and up to date legal information covering:
This Practice Note is impacted by the decision of the UK on 23 June 2016 to leave the European Union. For further details on the impact on the Recast Regulation on Insolvency, see Practice Note: Brexit—impact on Recast Regulation on Insolvency.
We will continue to monitor developments in this respect and throughout the negotiation period and beyond. In the meantime, for further reading on the impact of Brexit and related issues facing lawyers in this area, see Practice Note: Brexit—worst case scenarios for R&I lawyers.
For updates and details of other Brexit related developments and legislation, see Practice Note: Brexit SI tracker for R&I practitioners. For access to related documents and further reading on Brexit, see: Brexit toolkit.
The hotchpot rule has been a well-established part of domestic English law for many years. Essentially, it requires a creditor to account for whatever it has recovered in a foreign country by way of legal process or otherwise before it can receive any dividend in English insolvency proceedings. If its rate of recovery (through its actions abroad) exceeds that rate payable to other creditors in the English insolvency proceedings, it will not be allowed to participate in the dividend payable in the English proceedings.
The hotchpot rule was summarised by the Privy Council in Cleaver
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