Cross-Border Insolvencies - Aiding A Foreign Court

In the current climate, where once well-respected, confident and apparently prosperous businesses with interests in more than one country now face insolvency and even closure, requests for assistance from a foreign court in insolvency matters will likely become more frequent.

Need For Assistance

The need for assistance arises from the fact that Jersey is a separate jurisdiction and consequently any authority granted to a foreign insolvency office holder will not extend to Jersey without further order of the Jersey Court. Therefore, in order to, for example, access money held in Jersey bank accounts, or to arrange for Jersey-situate real property to be sold, the foreign office holder must apply for his appointment to be registered in the Royal Court in Jersey. Article 49 of the Bankruptcy (Désastre) (Jersey) Law 1990 ("the Law") gives a discretion to the Royal Court to assist the courts of certain prescribed territories in matters relating to the insolvency of a