from Part III - Towards a New Insolvency Framework in Emerging Economies
Published online by Cambridge University Press: 06 June 2024
This chapter argues that countries, and especially emerging economies, should facilitate the choice of insolvency forum. Ideally, this choice of insolvency forum should be allowed ex ante. Thus, in addition to providing debtors and creditors with the possibility of having access to more attractive insolvency systems in the hypothetical event of financial distress, the ex ante choice of insolvency forum can promote predictability, access to finance and economic growth. Alternatively, if the insolvency forum cannot be chosen ex ante, at least it should be facilitated ex post. Regardless of the solution eventually adopted, this chapter explains that various safeguards need to be adopted to prevent the opportunistic choice or change of insolvency forum. It also argues that this new approach for the choice of insolvency forum requires certain changes to the rules governing cross-border insolvency and particularly those established in the UNCITRAL Model Law on Cross-Border Insolvency.
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