In any cross-border case, 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] and the UNCITRAL Model Law on cross border insolvency means that if time permits, practitioners may consider forum shopping to move the COMI of a company (regardless of where it is incorporated in the world) to a jurisdiction with a more favourable restructuring or insolvency regime.
Historically, parties have tended to favour the following jurisdictions for conducting restructurings and insolvencies:
the US
the UK
It's not surprising to see that the US and the UK rank highly and these have been two of the most popular jurisdictions to shift COMI to. It seems that the
To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.
**Trials are provided to all LexisNexis content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisNexis services please email customer service via our online form. Free trials are only available to individuals based in the UK, Ireland and selected UK overseas territories and Caribbean countries. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
R3, the UK trade association for restructuring, turnaround and insolvency, has appointed Sonia Jordan as its President for a 12-month term, succeeding...
This week's edition of Restructuring & Insolvency weekly highlights includes: an analysis of an application for directions approving a scheme for...
Restructuring & Insolvency analysis: The High Court approved a distribution scheme for a client money pool under CASS 5 in the administration of an...
Restructuring & Insolvency analysis: This decision clarifies the threshold for establishing that a petition debt is disputed on ‘substantial grounds’...
The Gibbs ruleThe Gibbs rule provides that the discharge of a debt may only properly be determined by the governing law of the debt. Subject to the modifying effect of legal instruments in the area of cross-border insolvency, an English court may apply this common law rule to hold that a foreign
Priority between loss reliefs in loss making companiesWhy does it matter?A company that is a member of a group and has incurred any of the types of losses available for surrender by way of group relief may, without any further rules, have more than one way in which to use the loss. There are a
If a beneficiary signs a deed of disclaimer of their share of an estate and the estate pays their legal fees, will that count as a PET against their estate?A disclaimer is the refusal of a gift prior to acceptance. The refusal of the gift must take place before the beneficiary accepts any benefit
Strike out—making an application to strike out a statement of caseA strike out order can be made either following an application by the parties or on the court's own initiative. This Practice Note deals with the scenario of the order being made following a party's application.Making an application
0330 161 1234