The UNCITRAL Model Law on Cross-Border Insolvency is due to come into force on 6 April 2006. It will apply to corporate and personal debtors wherever:
- a foreign insolvency office-holder seeks assistance from the English court for a foreign insolvency
- the English office-holder seeks assistance in a foreign state
- there are concurrent insolvency proceedings in England and elsewhere
- foreign creditors want to start or join in an English insolvency
The Model Law has already been or is about to be enacted by many of the major trading nations, including the US, Canada, Japan, South Africa, Australia and New Zealand. The key implications for banks are:
- faster recognition by English courts for insolvency office-holders in foreign main proceedings (where the debtor’s centre of main interests is). Banks should still insist on an English court order granting recognition to the insolvency office-holder before allowing him to deal with assets of the estate. Foreign insolvencies can
