Examining the Key Issues in the UK’s legal Framework in Cross-Border Insolvencies

Abstract

As businesses continue to expand globally, it is essential that the insolvency laws which deals with cross-border insolvencies must be effective and efficient. In order to achieve this, cross-border insolvency laws must achieve the goals of maximizing the debtor’s estate for distribution to creditors; enhancing cooperation and communication between the local and the foreign courts and insolvency practitioners related in a cross-border insolvency case as well as providing certainty and predictability for all related parties. Following Brexit, the UK legal framework in cross-border insolvency will consist of three discrete gateways. These include the Cross-border Insolvency Regulations 2006, s.426 of the Insolvency Act 1986 and the common law. This dissertation aims to answer the following main question: what are the key issues in the UK’s current legal framework in cross-border insolvency and how to address these issues? In order to answer this question, the dissertation will critically examine each gateway which is currently available under UK’s current legal framework for cross-border insolvency, and when possible, propose solutions to these issues.