Effectiveness of security rights in insolvency

Only if the guarantees are called in does a full insolvency occur, with the entire public debt being rescheduled.

Insolvency law

Insolvency

Possible future work in the area of insolvency law

(e) In the area of insolvency, the UNCITRAL Model Law on Cross Border Insolvency and the UNCITRAL Legislative Guide on Insolvency Law

(ll) Insolvency estate means assets and rights of the debtor that are controlled or supervised by the insolvency representative and subject to the insolvency proceedings.

(iii) The insolvency administrator.

Insolvency Guide recommendations

(b) Insolvency law

(b) Insolvency law

Again, virtually all insolvency systems already have provisions in place to enhance recoveries by insolvency administrators from parties who have engaged in improper transactions with the debtor prior to its insolvency, but many of these provisions are difficult to enforce in the event of a multinational insolvency.

Developments in insolvency law adoption of the UNCITRAL Model Law on Cross Border Insolvency

Recommendations 115 (impact of insolvency on conflict of laws rules) and 116 (enforcement in insolvency proceedings)

Creditors in insolvency proceedings

International Insolvency Institute (III)

There was sufficient support in the Working Group for recommendation 11.

Directors' and officers' responsibilities and liabilities in insolvency and pre insolvency cases

(nn) Insolvency representative means a person or body responsible for administering the insolvency estate.

The III urges UNCITRAL to develop model guidelines on director and officer responsibilities and liabilities in insolvency and pre insolvency cases.

Domestic insolvency law treatment

Assets constituting the estate

The insolvency law should specify that

Protection and preservation of the insolvency estate

Impact of insolvency on the law applicable

These are normally based on a monthly payment, and at the end of the agreed term the remaining debt is written off.

(4) The insolvency law should specify that where a security interest is effective and enforceable under law other than the insolvency law, it will be recognized in insolvency proceedings as effective and enforceable.

The insolvency law should specify that, if a security right is entitled to priority under law other than the insolvency law, that priority continues unimpaired in insolvency proceedings except if, pursuant to the insolvency law, another claim is given priority.

(62) The insolvency law should permit the insolvency representative to determine the treatment of any assets that are burdensome to the estate.

UNCITRAL has a proven track record in insolvency law work, developing both the Model Law on Cross Border Insolvency and the Legislative Guide on Insolvency Law in comparatively short periods of time.

(46) The insolvency law should specify that, on commencement of insolvency proceedings add a, b, c, d, e

UNCITRAL Legislative Guide on Insolvency Law

In that connection, the Commission noted with particular satisfaction the efforts undertaken by Working Group V (Insolvency Law) and Working Group VI towards coordinating their work on a subject of common interest such as the treatment of security interests in the case of insolvency proceedings.

The insolvency law should provide that, in the case of the insolvency proceedings of the grantor, the acquisition financier has the rights and duties of a holder of a security right.

Avoiding future cases of non cooperative workouts from insolvency and strengthening confidence all around in a country's sovereign debt were a high priority.

This note includes recommendations taken from the UNCITRAL Legislative Guide on Insolvency Law (the Insolvency Guide), indicated by numbers in parentheses (the numbers reflect the numbers of the Insolvency Guide), and recommendations A K, which are new and therefore additional to the recommendations in the Insolvency Guide.

C. Except as provided in D , the insolvency law should provide that an asset of the estate acquired after the commencement of an insolvency proceeding is not subject to a security right created by the grantor before the commencement of the insolvency proceeding.

(kk) Insolvency court means a judicial or other authority competent to control or supervise an insolvency proceeding.

Treatment of assets acquired after commencement

(iv) The insolvency representative in the insolvency of the grantor or

C. Treatment of corporate groups in insolvency

Alternatives to direct regulation of corporate groups in insolvency would include providing sufficient definition in other parts of the insolvency law to allow application of these provisions to corporate groups, such as the use of avoidance or subordination provisions with respect to related parties.

However, it was suggested that recommendation 12 should be recast to address the rights of the acquisition financier in the case of insolvency rather than the duties of the insolvency representative.

(49) The insolvency law should specify that the measures applicable on commencement of insolvency proceedings remain effective throughout those proceedings until

(mm) Insolvency proceedings means collective judicial or administrative proceedings for the purposes of either reorganization or liquidation of the debtor's business conducted according to the insolvency law.