Table of advantages and disadvantages of restructuring in various jurisdictions worldwide

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

  • Table of advantages and disadvantages of restructuring in various jurisdictions worldwide
  • Rationale
  • Getting the deal through—Restructuring and Insolvency
  • Individual country guides

Table of advantages and disadvantages of restructuring in various jurisdictions worldwide

Rationale

In any cross-border case involving a formal insolvency procedure, practitioners will assess which jurisdictions are available for the proceedings, looking at the advantages and disadvantages of each. The use of the concept of centre of main interests (COMI) in the Regulation (EU) 2015/848 (OJ L141 5.6.2015 p 19), Recast Regulation on Insolvency [EU Recast Regulation on Insolvency](see Practice Note: Recast EC Regulation—establishing the centre of main interests (COMI) for corporates) and the UNCITRAL Model Law (see UNCITRAL Model Law and Cross-Border Insolvency Regulations 2006 (CBIR)—overview) means that if time permits, practitioners may consider forum shopping to move the COMI of a company (regardless of where it's incorporated in the world) to a jurisdiction with a more favourable restructuring or insolvency regime (see Practice Note: Forum shopping and practical ways to move COMI).

European countries may well modify their laws, particularly to allow stays, cram down and debtor in possession (DIP) finance in light of the EU Directive on preventive restructuring frameworks, second chance and measures to increase the efficiency of restructuring, insolvency and discharge procedures (see Practice Note: Harmonising insolvencies and restructurings across Europe).

Certain countries modified or relaxed their insolvency laws/directors’ duties for a short period in 2020/2021 due to the coronavirus (COVID-19) pandemic (see Practice Note: Coronavirus (COVID-19) Tracker of insolvency reforms globally [Archived]).

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