Cross-Border Recognition of Restructuring Proceedings: State of the Market

Kirkland restructuring partner Kate Stephenson authored “Cross-Border Recognition of Restructuring Proceedings: State of the Market,” a technical paper that was first published by INSOL International. Kirkland attorneys Zoe Stembridge, Paul Quinn, Susan Golden, Gabrielle Reardon and Cristina Weidner also contributed to this paper, together with local counsel in Singapore (Clayton Chong, WongPartnership) and Brazil (Marcelo Sampaio Góes Ricupero and Giovanna Campedelli Macedo, Mattos Filho).

The paper provides a comprehensive overview of recent developments and advancements in cross-border recognition principles and practices arising from a number of high-profile restructuring matters in the UK, Hong Kong, the U.S., Singapore, the EU and Brazil. 

Trends toward enhanced recognition and cooperation are discussed, including the U.S. and Singapore approaches to overcoming the limitations of the rule in Gibbs, the Hong Kong-Mainland China cooperation protocols, the new preventive restructuring regimes in the EU and the UK's move to adopt the new Model Law on enterprise group arrangements and to re-evaluate the ongoing role of Gibbs. Limitations in the cross-border recognition framework globally are also explored, including the use of the COMI criterion as a basis for recognition.

The paper also poses issues and questions that may shape the future of cross-border recognition and cooperation in future years.

The paper is exceptionally timely, given the significant volume of cross-border restructuring matters over the last few years, a trend that is likely to continue given the expansion of business across borders, often with the use of complex group structures and assets, creditors and entities in multiple jurisdictions.

Read the Technical Paper.