Mutual assistance in insolvency - will it take off in 2007?
The UNCITRAL Model Law on Cross-Border Insolvency should enhance cross-border assistance for non-EU officeholders and creditors in British insolvency proceedings.
Introduced in England and Wales, and Scotland, on 4 April 2006 it was first applied in the English High Court on 23 November 2006 in Re Rajapakse (unreported) when a US Chapter 7 Trustee sought the court's assistance to recover assets in England.
Cooperation in cross-border insolvency proceedings within the EU is governed by the European Insolvency Regulation.
Chapter 15 of the US Bankruptcy Code similarly introduces the UNCITRAL Model Law into US law.
Richard Howard's post Global Bankruptcy Mutual Assistance addresses the question in relation to Great Britain by outlining the core provisions of The Cross-Border Insolvency Regulations 2006.
We address foreign creditors' rights in the UK in a previous post here, and you can find out more about the UNCITRAL Model law here.
