Key Points:
Complex cross-border issues can be dealt with relatively
easily under the Cross-Border Insolvency Act as long as flexibility
is built into the relevant orders.
Cross-border insolvencies and restructuring might sound
challenging, but there are some mechanisms that can make the
process run surprisingly smoothly. Australia's Cross-Border
Insolvency Act 2008 (Cth) was recently used in the context of a
multinational reorganisation of a Japanese business to recognise
foreign insolvency proceedings (Yakushiji v Daiichi Chuo Kisen
Kaisha [2015] FCA 1170).
Overview of the Cross-Border Insolvency Act
The Cross-Border Insolvency Act 2008 incorporates the Model Law
on Cross-Border Insolvency in Schedule 1 to the Act. The Model Law
is intended to ensure co-operation between foreign courts,
increased legal certainty for trade and investment and fair and
efficient administration of cross-border insolvencies.
