International Insolvency Law

Teaching hours and credit allocation: 16 hours, 3 credits

The aim of this module is to familiarise students with the general principles underpinning modern systems of international insolvency law and to provide an overview of insolvency procedures of corporations, financial institutions and sovereign entities. The subject involves considerations with regard to insolvency from the point of a country’s market and economy, the view of a debtor, a creditor and an insolvency administrator and the role of a court. Emphasis will be placed on the insolvency law in corporate practice and the effectiveness of mechanisms for dealing with cross-border insolvency. The course will have a transactional focus with actual case studies and will identify practical and commercial issues raised during a cross- border settlement of a given case.

Learning outcomes

On completion of this module, students are expected to be able to:

  • analyse the specials of cross-border insolvency proceedings
  • develop the necessary legal and economic steps within the practical work
  • understand where the insolvency proceedings against the multinational enterprise should take place
  • understand how issues of jurisdiction may affect rights of the corporate stakeholders
  • recognise what is the law that should apply to the insolvency process
  • understand how the multinational corporate group in insolvency should be dealt with
  • recognise the diversity of interest of all stakeholders (different creditors, debtor)
  • specify specific roles and tasks in given insolvency proceedings (aim of the proceeding, role of office holders and courts)
  • understand, interpret and apply the recent legislation dealing with cross-border insolvency cases
  • identify practical and commercial issues raised during a cross-border settlement of a given case.

Content

  • Treaty of the European Community (EGV) about insolvency proceedings
  • Substantive insolvency laws in key jurisdictions
  • Recognition of foreign proceedings
  • Coordination of concurrent proceedings
  • Cross-boarder collaboration between judges and liquidators
  • Access to the capital markets
  • UNCITRAL’s model law on cross-border insolvencies
  • Out-of-court workouts and ‘pre-packaged’ plans
  • Banking crises
  • IMF’s sovereign debt restructuring mechanism
  • Holdout creditors and the use of collective action clause
  • The London approach
  • The role of the Paris club