Creditors in insolvency proceedings

Existence of local insolvency proceedings

Effect of a subordination agreement in insolvency proceedings

(c) Request any relief available to it in insolvency proceedings.

CHAPTER III. RECOGNITION OF FOREIGN INSOLVENCY PROCEEDINGS

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

Access of foreign creditors to insolvency proceedings in the enacting State

Article 11 6 . Recognition of foreign insolvency proceedings

The phrase quot to commence ... insolvency proceedings in the enacting State quot was found to be inadequate, as in many legal systems the insolvency proceedings were only commenced by judicial decision.

D. Foreign assistance for insolvency proceedings taking place in the enacting State 6

providing for court jurisdiction and facilitating coordination in cases of concurrent insolvency proceedings.

(31) The insolvency law of the State in which insolvency proceedings are commenced (lex fori concursus) should apply to all aspects of the commencement, conduct, administration and conclusion of those insolvency proceedings and their effects. These may include, for example

recognition of foreign proceedings does not prevent local creditors from initiating collective insolvency proceedings in the enacting State (art. 22)

Article 9 16 . Commencement of insolvency proceedings by foreign representative

(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.

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

(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.

The Hague Conference collaborated closely with UNCITRAL in developing the chapter of the UNCITRAL Legislative Guide on Insolvency Law dealing with law applicable in insolvency proceedings.

Three issues of specific concern in insolvency proceedings involving one of a group of companies are

The unavailability of provisional measures in such circumstances could frustrate the objectives of the insolvency proceedings.

(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 question was raised as to whether it would be advisable, in case of non main proceedings, to limit the right to request the opening of insolvency proceedings to the local creditors, similarly to the provisions contained in article 3(4) of the European Union Convention on Insolvency Proceedings.

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.

Under some insolvency laws, intra group transactions may be subject to avoidance proceedings.

Article 9 16 . Commencement of insolvency proceedings by foreign representatives 71 75 17

Article 10 17 . Access of foreign creditors to insolvency proceedings in the enacting State 76 98 18

Therefore, it was argued, quot interim proceedings quot should not be distinguished from other insolvency proceedings for the purposes of recognition.

It would provide for court access for foreign insolvency administrators, the recognition of foreign insolvency proceedings, the right to commence or participate in an insolvency proceeding in the enacting State and judicial cooperation and assistance in cross border insolvencies.

(c) Commencement of insolvency proceedings by a group company against a related group company.

authorizing courts in the enacting State and persons administering insolvency proceedings in the enacting State to seek assistance abroad

(138) The insolvency law should specify that a party in interest may appeal from any order of the court in the insolvency proceedings that affects its rights, obligations or interests.

(30) The law applicable to the validity and effectiveness of rights and claims existing at the time of the commencement of insolvency proceedings should be determined by the private international law rules of the State in which insolvency proceedings are commenced.

There is, thus, at both a domestic and international level, a comparative absence of any guidelines as to the circumstances under which consolidated insolvency proceedings of companies belonging to a group should be considered in insolvency proceedings and how issues such as jurisdiction, filing, secondary proceedings and distribution should be addressed.

(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 Model Provisions are in the form of model legislation and possess the flexibility suited for taking into account differing approaches in national insolvency laws and varied propensities of States to cooperate in insolvency matters and to coordinate insolvency proceedings (art. 21).

However, criminal proceedings associated with punishment of fraudulent activities often significantly impact the insolvency process.

For example, neither the European Council Regulation No. 1346 2000 on Insolvency Proceedings nor the UNCITRAL Model Law on Cross Border Insolvency addresses the issue.

46. His delegation supported the underlying principles of the Model Law judicial cooperation court access for foreign insolvency administrators and recognition of foreign insolvency proceedings.

The stay does not apply to commencement of full insolvency proceedings in the United States, although those proceedings would be subject to the provisions on coordination and cooperation.

Note to the Working Group See recommendation I in the recommendations of this Guide on Insolvency 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.

The intent of article 5 is to equip administrators or other authorities appointed in insolvency proceedings commenced in the enacting State to act abroad as foreign representatives of those proceedings.

That solution was defended on the ground that admitting recognition of non main proceedings would make it difficult to coordinate among several insolvency proceedings.

It was observed that paragraph (7) used language consistent with the UNCITRAL Model Law on Cross border Insolvency and the European Union Convention on 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.

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.