• Cross-Border Insolvency: A Comparative Analysis

In 1997, the United Nations Commission on International Trade Law (UNCITRAL) adopted a model law (UNCITRAL Model or Model Law) to offer guidance for cross-border insolvency proceedings and to serve as a foundational framework for nations choosing to implement it. As a model law, its adoption is entirely discretionary, and many nations that have chosen to adopt it have done so with additional limiting provisions or have enacted only select portions of the framework while ignoring others. The European Union (EU) has also drafted its own model law, titled the Council Regulation on Insolvency Proceedings (EU Council Regulation), and it has many features similar to the UNCITRAL Model. However, the EU Council Regulation includes particular provisions that distinguish it from the UNCITRAL Model, particularly in the approach to the solutions for cross-border insolvency issues. In 2005, the United States adopted a large portion of the UNCITRAL Model as Chapter 15 under Title 11 of the U.S. Bankruptcy Code.