Singapore, U.K., Delaware, And New York Courts Adopt Guidelines For Communication And Cooperation Between Courts In Cross-Border Insolvency Matters

On February 1, 2017, the Supreme Court of Singapore and the U.S. Bankruptcy Court for the District of Delaware announced that they had formally implemented Guidelines for Communication and Cooperation between Courts in Cross-Border Insolvency Matters (the "Guidelines"). The U.S. Bankruptcy Court for the Southern District of New York adopted the Guidelines on February 17, 2017. The Guidelines, as implemented by the Singapore Supreme Court, are available here. In the U.K., the Chancery Guide, which applies to chapter 25 ("The Bankruptcy and Companies Courts"), was amended on May 4, 2017, to include the Guidelines. They are set forth in Local Bankruptcy Rule 9029-2 in Delaware and General Order M-511 in New York.

The stated purpose of the Guidelines is "to improve the efficiency and effectiveness of cross-border insolvency proceedings and to enhance coordination and cooperation among courts under whose supervision such proceedings are being conducted." Their overarching objective is to improve efficiency in complex cases, which ideally will minimize litigation, time, and expense for the benefit of all stakeholders.

The Guidelines were developed by judges from several jurisdictions, including Australia, Bermuda, the British Virgin Islands, Canada, the Cayman Islands, England and Wales, Singapore, and the U.S., all of which participated in discussions at the initial meeting of the Judicial Insolvency Network convened in Singapore in October 2016. The Guidelines are noteworthy not only because they provide a framework for cooperation and communication in cross-border bankruptcy and insolvency proceedings, but because the initiative represents the first time that such a common framework has been adopted (and now implemented) by courts for that purpose. Previously, communication between courts involved in "parallel" bankruptcy or insolvency proceedings was often nonexistent or poorly coordinated, in many cases achieved by means of ad hoc protocols. This created significant delay and uncertainty and sometimes resulted in conflicting rulings from the courts involved.

In Singapore, the adoption of the Guidelines was part of an initiative designed to transform the country into a hub for international restructuring. Part of that initiative involves Singapore's enactment of a new corporate bankruptcy law, a brief discussion of which is available here. It is anticipated that the Guidelines will be implemented in other key jurisdictions, including the...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT