where the debtor has an establishment or assets in more than one state, including rules on choice of law, cooperation between courts, and the recognition of foreign judicial decisions and orders. The Convention has not been ratified by all members and its prospects for entry into force are still uncertain. In addition, the International Bar Association’s Insolvency and Creditor’s Rights Committee (known as Committee J) has developed the Cross-BorderInsolvency Concordat, which is also designed to provide a framework for cooperation in multijurisdictional insolvencies
). Chapter 5 briefly discusses institutional aspects of insolvency procedures and, in particular, addresses the important role of the court and the administrator. Chapter 6 briefly reviews the major issues raised by cross-borderinsolvencies, and the Appendix contains a study prepared by the UNCITRAL Secretariat regarding the UNCITRAL model law that is designed to address these problems.
II. Creditor Rights
Legal framework for secured lending
Creation and registration of security interests
Enforcement of secured claims
III. Corporate Insolvency Framework
IV. Institutional Framework
1. Mortgage and Pledge Documents Registered
2. Bankruptcy Proceedings: Number of Cases
3. Bankruptcy Proceedings: Average Duration of Cases
E xecutive S ummary
Since the Insolvency and
This Technical Note discusses key findings of the insolvency and creditor rights assessment for Lithuania. Lithuania has made significant progress in the field of creditor rights legislation and related institutions. Under the current legal framework, the creation and registration of secured transactions is rather easy and affordable. The privatization of the bailiffs system has contributed to accelerating the recovery process and increasing the enforcement efficiency. In the area of corporate insolvency, the Enterprise Bankruptcy Law and the Law on Restructuring of Enterprises are generally consistent with international standards.
restructuring in cases where the plan has been accepted by the same majority legally established for plans approved in full reorganization proceedings.
17. Cross-borderinsolvencies within the European Union territory are now governed by the EU regulation. Since Lithuania joined the European Union, cross-borderinsolvencies involving EU countries are conducted based on the EU Council Regulation 1346/2000 . Notwithstanding this, since the mentioned EU Regulation only governs cross-borderinsolvencies where the main place of business is within
authorities should consider, and incorporate into their planning, clear options or principles for the exit from public intervention.
Annex II The UNCITRAL Framework for Cross-Border Corporate Insolvency
The Model Law
53. The Model Law on Cross-borderInsolvency (the “Model Law”) was adopted in 1997. It sets out a framework for managing the insolvency of a cross-border firm in a fair and orderly manner . It contemplates the insolvency of single entities with establishments, assets or creditors in more than one jurisdiction. It does not apply to groups
Mr. R. B. Johnston, Mr. Balázs Horváth, Mr. Luca Errico, and Ms. Jingqing Chai
, credit, and insurance technical risks.
10 The recent G-10 Contact Group report on Insolvency Arrangements and Contract Enforceability describes the important role of international judicial cooperation in facilitating the resolution of cross-borderinsolvencies. The report stresses the need for continued substantial efforts to reduce legal uncertainty and systemic vulnerabilities for the international financial system, and to enhance its efficiency.
1. President’s Working Group on Financial Markets
2. FSF Principles for Cross-Border Coordination in Crisis Management
3. Cross-BorderInsolvency and Interdependences in Lehman Brother
I. Comparison of Current Proposals for Reform of U.S. Crisis Management Arrangements
II. Exceptional Crisis Measures: Table 1. Treasury
II.. Exceptional Crisis Measures: Table 2. Federal Reserve
II. Exceptional Crisis Measures: Table 3. FDIC
American International Group
Agency for Financial Stability