Australia calls for change to international insolvency law

Author: | Published: 8 Sep 2011

Australia’s 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.