Vol 14 (2017) - Issue 6

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What Has the Judicial Insolvency Network Done for Cooperation between Courts in Multi-Jurisdiction Insolvencies?

More corporate insolvencies than ever involve groups operating across multiple jurisdictions. We have seen a number of examples in recent times where closer cooperation between courts could have resulted in a simpler and less costly result for all estates involved. The courts in many jurisdictions including England and Wales have been willing to do all they can to assist insolvency proceedings in other jurisdictions and technology is helping to make long-distance communications easier. However, the necessarily adversarial nature of the litigation required and the risks faced by insolvency practitioners of inadvertently submitting to a foreign jurisdiction have meant that the process has often not been efficient and has always resulted in considerable cost to each estate.
The recent adoption by the High Court of the Judicial Insolvency Network ('JIN') guidelines for communication and cooperation between courts in cross-border insolvency matters (the 'Guidelines') (see below) has reignited the discussion about cooperation between courts in an international insolvency. In this article, we have looked at the development of cross-border insolvency cooperation and consider the impact the Guidelines will have in the future.