Conversion

• Author: United Nations Commission on International Trade Law
• Pages: 33-34

Section one. UNCITRAL Legislative Recommendations on Insolvency of Micro- and Small Enterprises 33

Modication or termination of an order for procedural

consolidation or coordination

365. e insolvency law should specify that an order for procedural consolidation

or coordination may be modied or terminated, provided that any actions or deci-

sions already taken pursuant to the order are not aected by the modication or

termination. Where more than one State body is involved in ordering procedural

consolidation or coordination, those State bodies may take appropriate steps to

coordinate modication or termination of procedural consolidation or

coordination.

Notice of procedural consolidation and coordination

366. e insolvency law should establish requirements for giving notice with

respect to applications and orders for procedural consolidation or coordination and

modication or termination of procedural consolidation or coordination, including

the scope and extent of the order, the parties to whom notice should be given, the

party responsible for giving notice and the content of the notice.

O. Conversion

Conditions for conversion

367. e insolvency law should provide for conversion between dierent types

of proceedings in appropriate circumstances and subject to applicable eligibility

and other requirements.

Procedures for conversion

368. e insolvency law should address procedures for conversion, including

notication to all known parties in interest about the conversion, and mechanisms

for addressing objections to that course of action.

Eect of conversion on post-commencement nance

369. e insolvency law should specify that where a simplied reorganization

proceeding is converted to a liquidation proceeding, any priority accorded to post-

commencement nance in the simplied reorganization proceeding should

continue to be recognized in the liquidation proceeding. (See recommendation 68.)