In brief
Australia’s borders may be closed, but from the start of the pandemic, Australian courts have continued to grapple with insolvency issues from beyond our shores. Recent cases have expanded the recognition of international insolvency processes in Australia, whilst also highlighting that Australia’s own insolvency regimes have application internationally.
Key takeaways
There have been relatively few applications for recognition under the UNCITRAL Model Law since the pandemic started. Significantly these cases continue to recognise foreign insolvency proceedings that have not previously been considered by the Australian courts.
Australian courts have also recognised the operation of Australian-law stays on the enforcement of rights under the Corporations Act 2001 (Cth) (Corporations Act) beyond our shores.
For lawyers able to leverage their client’s rights across multiple jurisdictions, whether under the Model Law or by seeking to invoke rights based on principles of comity or other statutory rights, recent cases have expanded the opportunities to restructure and save businesses.
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