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> CHAPTER 15 - CROSS-BORDER
• Based on the Model Law on Cross Border Insolvency, which was prepared by the United Nations Commission on International Trade Law (UNCITRAL).*
• Designed to provide effective mechanisms for dealing with insolvency cases involving debtors, assets, and claimants involving multiple countries.
• Central theme of chapter 15 is comity: the “recognition which one nation allows within its territory to the legislative, executive or judicial acts of another nation, having due regard both to international duty and convenience, and to the rights of its own citizens or of other persons who are under the protections of its laws.”
• The main objectives of Chapter 15 are:
1. to promote cooperation between U.S. and foreign courts;
2. to establish greater legal certainty for trade and investment;
3. to provide for the fair and efficient administration of cross-border insolvencies that protects the interests of all creditors and other interested entities;
4. to afford protection and maximization of the value of the debtor’s assets; and
5. to facilitate the rescue of financially troubled businesses, thereby protecting investment and preserving employment.
11 U.S.C. § 1501(a).
• The main objectives of Chapter 15 are:
1. to promote cooperation between U.S. and foreign courts;
2. to establish greater legal certainty for trade and investment;
3. to provide for the fair and efficient administration of cross-border insolvencies that protects the interests of all creditors and other interested entities;
4. to afford protection and maximization of the value of the debtor’s assets; and
5. to facilitate the rescue of financially troubled businesses, thereby protecting investment and preserving employment.
11 U.S.C. § 1501(a).
* Adopted in Australia, Canada, Chile, Colombia, Greece, Japan, Mauritius, Mexico, Montenegro, New Zealand, Philippines, Poland, Republic of Korea, Romania, Serbia, Seychelles, Slovenia, South Africa, Uganda, United Kingdom of Great Britain and Northern Ireland, United States of America, and Vanuatu. (http://www.uncitral.org/uncitral/en/uncitral_texts/insolvency/1997Model_status.html)
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