The transfer of assets between different jurisdictions under the Cross-Border Insolvency Regulations 2006, section 426 of the Insolvency Act 1986, and the Recast Regulation on Insolvency
Produced in partnership with Lexa Hilliard QC of Wilberforce Chambers and Philip Hinks of 3 Verulam Buildings

The following Restructuring & Insolvency practice note produced in partnership with Lexa Hilliard QC of Wilberforce Chambers and Philip Hinks of 3 Verulam Buildings provides comprehensive and up to date legal information covering:

  • The transfer of assets between different jurisdictions under the Cross-Border Insolvency Regulations 2006, section 426 of the Insolvency Act 1986, and the Recast Regulation on Insolvency
  • Cases in which a transfer of assets may be ordered
  • Jurisdiction to order remittal of assets—IA 1986, s 426 and ancillary proceedings
  • The Recast Regulation on Insolvency
  • UNCITRAL Model Law on Insolvency
  • General principles relating to the remittal of assets

The transfer of assets between different jurisdictions under the Cross-Border Insolvency Regulations 2006, section 426 of the Insolvency Act 1986, and the Recast Regulation on Insolvency

Cases in which a transfer of assets may be ordered

It is increasingly the case that large-scale insolvencies have international dimensions. The company in question may have places of business, assets and creditors located in a number of different jurisdictions. In such circumstances, issues arise as to the manner in which the company’s assets may be best preserved pending the making of an orderly distribution to creditors, as well as the manner in which the creditors domiciled in a particular country may be adequately protected.

A cost-effective solution is for there to be only one set of insolvency proceedings (typically in the place of the company’s incorporation) and for the authority of that office-holder to be recognised in all of the jurisdictions in which the company has assets/creditors (see Re Cambridge Gas Transportation). The efficacy of this solution is strengthened by the availability of relief under the United Nations Commission on International Trade Law (UNCITRAL) Model Law (see Practice Note: Recognition and other applications under the Cross-Border Insolvency Regulations) and, where applicable, section 426 of the Insolvency Act 1986 (IA 1986)(see Practice Note: Court-to-court assistance and Insolvency Act 1986, s 426). Practitioners should, however, note that the principle of universalism of

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