Insolvency law

Possible future work in the area of insolvency law

(b) Insolvency law

(b) Insolvency law

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

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

The insolvency law should specify that

(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.

UNCITRAL Legislative Guide on Insolvency Law

C. Treatment of corporate groups in insolvency

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

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.

Company law

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

Existing treatment of corporate groups in insolvency

Possible future work in the area of insolvency law

Addendum

The insolvency law may provide the court with the power to

(ii) Macedonia insolvency law reform (16 17 December 2004)

The insolvency law should specify that provisional measures terminate when

One possible advantage of addressing these issues in an insolvency law is to provide an incentive for corporate groups to continuously monitor the activities of companies within the group and take early action in the case of financial distress of a member of that group.

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

This note describes some of the activities of international organizations active in the field of insolvency law.

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.

(7) In order to design an effective and efficient insolvency law, the following common features should be considered

Another concern was that, by suggesting what an insolvency representative could or could not do, recommendation 12 inappropriately interfered with insolvency law.

Where law other than the insolvency law does not include such time periods, the stay applicable on commencement would operate to prevent the security interest being made effective.

(137) The insolvency law should specify that a party in interest have a right to be heard on any issue in the insolvency proceedings that affects its rights, obligations or interests.

The great majority of domestic insolvency and corporate law regimes do not address the treatment of corporate groups in specific legislation or at all.

III considers UNCITRAL well suited to becoming involved in a project of this complexity and wide ranging significance, given UNCITRAL's proven record with respect to the UNCITRAL Model Law on Cross Border Insolvency and the subsequent UNCITRAL Legislative Guide on Insolvency Law.

1346 2000 on Insolvency Proceedings nor the UNCITRAL Model Law on Cross Border Insolvency addresses the issue.

(58) The insolvency law should permit the insolvency representative to sell assets that are encumbered or subject to other interests free and clear of those encumbrances and other interests, outside the ordinary course of business, provided that

Chapter 15 incorporates the UNCITRAL Model Law on Cross Border Insolvency, largely following the terms of the Model Law. A few modifications are noted below.

This document is submitted late to reflect recent developments with respect to adoption of the UNCITRAL Model Law on Cross Border Insolvency.

This could be supported by stating clear principles in the insolvency law as a basis for the valuation.

Insolvency

(f) The possible repercussions for secured transactions and secured creditors in the way in which corporate groups are treated in insolvency.

In its work on the Legislative Guide on Insolvency Law, UNCITRAL recognized the importance of the issues relating to the treatment of corporate groups in insolvency and addressed them in part (Part two, chap. VI, paras.

J. The insolvency law should provide that, if a holder of a security right in an asset of the insolvency estate has subordinated its priority unilaterally or by agreement in favour of any existing or future competing claimant, such subordination is binding in insolvency proceedings with respect to the grantor.

(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

The insolvency law should facilitate and provide incentives for post commencement finance to be obtained by the insolvency representative where the insolvency representative determines it to be necessary for the continued operation or survival of the business of the debtor or the preservation or enhancement of the value of the estate.

Furthermore, in the course of developing both of these texts, UNCITRAL has formed links with key participants in the area of insolvency law, including Member and non member States, intergovernmental and non governmental organizations, as well as individual insolvency experts.