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ARTICLE · 15 AUGUST 2019

Timing Is Everything: Different Approaches To The Relevant Date For Determining COMI In Cross-Border Recognition Proceedings

The UNCITRAL Model Law on Cross-Border Insolvency was built on a model of modified universalism.

SingaporeInsolvency/Bankruptcy/Re-Structuring

KEY POINTS

  • Cross-border recognition of insolvency proceedings under the UNCITRAL Model Law (or its national equivalents) requires an assessment of whether the proceedings are foreign main or non-main proceedings in the relevant jurisdiction.
  • Foreign proceedings can only be recognised as 'foreign main proceedings' if they are taking place in the jurisdiction where the entity has its centre of main interests or COMI. This requires consideration of COMI at a particular point in time.
  • Traditionally the UK and the US have differed in their opinion of when COMI should be assessed. A recent flurry of UK and overseas cases has sparked further debate on this issue.
  • This article considers the position in the UK, compared to the US, Australia and Singapore.

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