As part of the on-going restructuring of the
As this appears to be the first occasion where the Court has approved a protocol of this nature and the jurisdictional basis for doing so was unclear prior to this matter, Kawaley J took the opportunity to helpfully clarify the basis upon which the Court's jurisdiction could be unlocked:
- Pursuant to the common law duty to assist foreign insolvency courts as underpinned by the principle of comity (the principal basis).
-
Pursuant to subsidiary sources of jurisdictional rules3 including:
- the Court's inherent jurisdiction to manage its own processes; and
-
Practice Direction No. 1 of 20184 which confirmed the appropriateness of the
American Law Institute / International Insolvency Institute Guidelines and the Judicial Insolvency Network Guidelines for use in cross-border insolvency and restructuring matters.
The detailed decision of Kawaley J in this matter re-affirms the Court's willingness and flexibility to facilitate cross-border restructurings, maintaining the
Walkers acts as
Footnotes
1
2 The
3 Kawaley J noted that these are built on top of the foundations of comity and the common law duty to assist foreign insolvency courts
4 "Court-to-court communication and cooperation in cross-border insolvency and restructuring cases"
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Mr
Walkers
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