An Update on the Manifestly Contrary to Public Policy Exception

07/25/2012

Chapter 15 is based on the Model Law on Cross Border Insolvency (the “Model Law”), which had been prepared by the United Nations Commission on International Trade Law (“UNCITRAL”), with significant input from insolvency practitioners all over the world. It was designed to create procedures for cooperation among foreign courts where insolvency proceedings are pending in more than one country and establish guidelines for the protection of assets internationally, while being sensitive to the political issues and differing legal systems of the countries involved. Any determination of a request for assistance under Chapter 15 must be “consistent with the principles of comity.”

“Comity,” in the legal sense, is neither a matter of absolute obligation, on the one hand, nor of mere courtesy and good will, upon the other. But it is the recognition which one nation allows within its territory to the legislative, executive or judicial acts of another nation, having due regard both to international duty and convenience, and to the rights of its own citizens or of other persons who are under the protection of its laws. 

Excerpted from a presentation at Haynes and Boone's Bankruptcy, Restructuring and Insolvency seminar entitled Going South: Issues in Cross-Border Insolvency and Restructuring between the U.S. and Mexico. To read the full paper, click on the PDF linked below.

PDF - Update on Manifestly Contrary to Public Policy Exception.pdf

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