Insolvency

The UNCITRAL Model Law on Cross-Border Insolvency (1997) (MLCBI) is designed to assist States in developing a modern, harmonized and fair insolvency framework to more effectively address instances of cross-border proceedings concerning debtors experiencing severe financial distress or insolvency. The accompanying Guide to Enactment, providing background and explanatory information to make the MLCBI a more effective tool, was revised in 2013. The UNCITRAL Legislative Guide on Insolvency Law (2004), which is divided into four parts, assists with the establishment of an efficient and effective legal framework and may be used as a reference by national authorities and legislative bodies when preparing new laws and regulations or reviewing the adequacy of existing laws and regulations. The UNCITRAL Practice Guide on Cross-Border Insolvency Cooperation (2009) makes reference to actual cases to provide information for practitioners and judges on practical aspects of cooperation and communication in cross-border insolvency cases. Further, the UNCITRAL Model Law on Cross-Border Insolvency: The Judicial Perspective, adopted in 2011 and updated in 2013, offers general guidance on the issues a judge might need to consider, based on the intentions of those who crafted the MLCBI and the experiences of those who have used it in practice.

UNCITRAL adopted the UNCITRAL Model Law on Recognition and Enforcement of Insolvency-Related Judgments (2018) (MLIJ) to assist States in establishing a framework of provisions for recognizing and enforcing insolvency-related judgments, and the Guide to Enactment to provide background and explanatory information on the MLIJ.

In 2019, UNCITRAL adopted the UNCITRAL Model Law on Enterprise Group Insolvency (MLEGI) designed to equip States with modern legislation addressing the domestic and cross-border insolvency of enterprise groups, complementing MLCBI and part three of the UNCITRAL Legislative Guide on Insolvency Law. What distinguishes MLEGI from MLCBI, which concerns itself with insolvency proceedings concerning a single debtor, is the focus on insolvency proceedings relating to multiple debtors that are members of the same enterprise group, which may be located in one or more jurisdictions. The term “enterprise group” is defined in MLEGI as two or more enterprises that are interconnected by control or significant ownership, and is further explained in the Guide to Enactment that accompanies MLEGI. Measures provided by MLEGI, although they draw upon and, in several respects, are similar to the those available under MLCBI, are designed to address specific needs of insolvency proceedings affecting multiple enterprise group members, in particular the need to achieve a certain degree of centralization, coordination and cooperation of such proceedings.