Q&A: INSOL President
answer – and this is what INSOL seeks to do – is to bring everybody’s laws and courts up to best-in- class standard. But until that happens, it seems to me that not only is it not wrong but it would also be foolish not to go where a business can be res- cued in the most efficient manner.
How do you expect insolvency regimes to develop given the different and varied economic and regulatory models in these new and emerging countries? INSOL works hard to encourage the development of emerging market restructuring and insolvency regimes, with four major initiatives ongoing in this area. We’re a member of the Forum for Insolvency Reform in the Middle East and North Africa (the FIRM) and the Forum for Asian Insolvency Reform (FAIR). We also have an annu- al seminar in South America, which rotates around countries in that jurisdiction, and an African Roundtable in operation since 2010 – both of which are proving increasingly popular. Our involvement in this capacity in these
regions has left me deeply encouraged by the widespread desire for reform. INSOL tries to demonstrate what is best-in-
class for a range of options and not to simply bang the drum for pro-creditor, or pro-debtor or pro- civil or pro-common law. We want to make clear you don’t need to reinvent the wheel but you can instead take advantage of the bits of other more- established regimes that you think are right for you. The UAE’s impending reforms, for example,
are said to be a mix of aspects of the UK, US, and French insolvency regimes best suited to the juris- diction. That’s encouraging to hear and we look forward to seeing the finished product. I think we will observe a continued move
towards emerging economies improving their laws in this way. And that in turn will open markets for the profession. Once people realise the value of what can be provided by good laws used by expe- rienced professionals, they will in turn want those services provided by the profession in their locali- ty.
Local insolvency laws often lack adequate pro-
visions to facilitate, where warranted, the co-ordi- nation of multiple insolvency proceedings. Ideally one would have a global version of the European Insolvency Regulation. UNCITRAL is a good start but is modest in its ambitions and scope and this has been demonstrated by some recent deci- sions. Even the common law has not been able to wave a magic wand to cause the gaps to be filled. Chapter 15 in the US (the successor to the
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Gordon Stewart is president of INSOL International
future as a financial centre is less based on schemes of arrangement and more the strength of the UK’s courts and laws
“ ”
admirable section 304 of the Bankruptcy Code) is useful in many cases with a US connection but that is not a global solution. I would like everybody’s game to be upped.
And I would like everybody to accept that univer- sality not territoriality is the way to go. We should recognise that the world is cross-border and a party in country X doing business in country Y knows – or should realise – that they may have to claim in a foreign insolvency and not their local procedure. Universalism avoids having multiple insolvencies.
How do you expect the proposed reform of Europe’s insolvency regulation (EIR) to impact implementation of English-law schemes of arrangement and by exten- sion London’s future as a financial centre/ issuer of debt? I think the EIR works pretty well, and I’m
pleased with the light-touch changes proposed recently. Policymakers suggest reducing secondary pro-
ceedings – that was a terroritorialist protection, which was rarely required or beneficial. The restrictions on their use is, therefore, welcome.
IFLR|RESTRUCTURING & INSOLVENCY 009 London’s
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