Strategic venue choice has recently been a bit of an embarrassment to the US bankruptcy system, with the “Texas Two-Step” as its apotheosis. Recently, three prominent professors wrote an open letter to UNCITRAL proposing to take that problem global (https://globalrestructuringreview.com/article/leading-academics-and-lawyers-urge-uncitral-replace-the-concept-of-comi).
Leading academics and lawyers urge UNCITRAL to replace the concept of COMI
The use of a debtor’s centre of main interests to determine the place where a foreign main proceeding should take place under the UNCITRAL Model Law is a “major flaw” that undermines the ability of insolvency law to reorganise viable businesses, according to a group of law professors supported by a host of industry heavyweights from around the globe.
Joanne Freeman
Dan Gillmor