Law Commons^™

Love Hertz: Corporate Groups And Insolvency Forum Selection, John A. E. Pottow

Law & Economics Working Papers

The Hertz bankruptcy got a lot of attention, including for its bizarre equity trading. A less heralded but more significant legal aspect of that insolvency, however, was its complex interaction of cross-border insolvency proceedings.

This article discusses the “centripetal” and “centrifugal” forces in the Hertz case that counselled a U.S.-based centralized solution for an international enterprise comprising over 10,000 branches centripetally but also accommodated centrifugal European resistance to subject directors to the consequences of filing their entities in a foreign jurisdiction. This not uncommon constellation of incentives required not a COMI shift but what this article terms a jurisdiction shift …

Love Hertz: Corporate Groups And Insolvency Forum Selection, John A. E. Pottow

Articles

The Hertz bankruptcy got a lot of attention, including for its bizarre equity trading. A less heralded but more significant legal aspect of that insolvency, however, was its complex interaction of cross-border insolvency proceedings.

This article discusses the “centripetal” and “centrifugal” forces in the Hertz case that counselled a U.S.-based centralized solution for an international enterprise comprising over 10,000 branches centripetally but also accommodated centrifugal European resistance to subject directors to the consequences of filing their entities in a foreign jurisdiction. This not uncommon constellation of incentives required not a COMI shift but what this article terms a jurisdiction shift …

Cross-Border Bankruptcy And The Cooperative Solution, Leah Barteld

Student Articles and Papers

Cross-border bankruptcy continues to be an important topic within bankruptcy regimes worldwide. As more corporations find themselves interacting in a market without the confines of geographic borders, countries need to adapt their regulatory schemes to be able to properly handle an orderly liquidation or reorganization without an adverse impact on the economy. This paper discuses the challenges of a cross-border bankruptcy regime that would be effective and proposes a cooperative solution for increasing coordination among insolvency proceedings. As a result of increasing cooperation among jurisdiction in light of the recent and ongoing financial crisis, reform within the bankruptcy regimes around …

Is International Bankruptcy Possible?, Frederick Tung

Faculty Scholarship

Although international business firms proliferate, there is no international bankruptcy system. Instead, bankruptcy law remains a matter for individual states. The failure of a multinational firm therefore raises difficult questions of conflict and cooperation among national bankruptcy laws. In the discourse over the appropriate design for an international bankruptcy system, universalism has long held sway as the dominant idea, embraced nearly universally by bankruptcy scholars. Universalism offers a simple and elegant blueprint for international bankruptcy. Under universalism, the bankruptcy regime of the debtor firm's home country would govern worldwide, enjoying global reach to treat all of the debtor's assets and …

Rethinking International Insolvency: The Neglected Role Of Choice-Of-Law Rules And Theory, Hannah L. Buxbaum

Articles by Maurer Faculty

Solutions to the problem of international bankruptcy are generally framed as either universalist (arguing that international bankruptcies should be administered in a single forum) or territorialist (arguing in favor of multiple local bankruptcies). This article seeks to expand this debate by using traditional conflicts theory to examine the problem of cross-border bankruptcy. It analyzes the current regime under which cross-border bankruptcies are administered in U.S. courts, concluding that this regime operates as a multilateralist (jurisdiction-selecting) regime. Concluding that multilateralism is an appropriate method for resolving choice-of-law issues in international insolvency, the article analyzes some possible refinements to the current system. …

United States Judicial Assistance In Cross-Border Insolvencies, Douglass G. Boshkoff

Articles by Maurer Faculty

No abstract provided.