“The Model Law is an effective and valuable tool in enabling cooperation between jurisdictions, providing a structural framework for recognition and clarity around the types of relief available to a foreign insolvency officeholder,” says Mr Child. “It has clearly increased efficiencies in terms of cost and time in pursuing cross-border asset recovery. The main drawback of the Model Law is its incomplete global adoption, which compels insolvency officeholders to rely on less structured or less certain recognition procedures in jurisdictions that have not adopted it, potentially increasing recovery costs.”
Notwithstanding its benefits, the Model Law requires careful consideration. A key issue is determining a company’s centre…