Australias lawyers are calling for the United Nations
Commission on International Trade (Uncitral) to broaden the
scope of the Cross-Border Insolvency Act 2008
(CBIA) to include multinational corporate groups
and their subsidiaries.
The CBIA only relates to single corporate entities and as
such has limited application in Australia where the majority of
companies undergoing insolvency proceedings are
locally-registered, said Blake Dawson restructuring and
insolvency partner Michael Sloan.
Reforming the law to include group structures is vital
if it is to have true significance here, he said.