Implementation of two UNCITRAL Model Laws on Insolvency

This consultation proposes the implementation into UK law of two “model laws” adopted by the United Nations Commission on International Trade Law (“UNCITRAL), further developing the international framework for the management of cross-border insolvencies. By being amongst the first countries to consider their implementation, the UK will signal its ongoing commitment to mutual cooperation and international best practice

United Nations Commission on International Trade Law (“UNCITRAL), further developing the international framework for the management of cross-border insolvencies. By being amongst the first countries to consider their implementation, the UK will signal its ongoing commitment to mutual cooperation and international best practice.

The Model Law on Recognition and Enforcement of Insolvency-Related Judgments deals with cross-border recognition of judgments that are associated with insolvency proceedings. The Model Law on Enterprise Group Insolvency provides tools to manage and coordinate insolvencies within corporate groups, while respecting that each company within the group remains a separate legal entity. These two model laws would join and complement the Model Law on Cross-Border Insolvency, which provides a grounding framework for international cooperation in respect of insolvency proceedings, and which the UK implemented in 2006 and 2007.