2nd Conference of the Judicial Insolvency Network in September 2018

Judges from the JIN met in New York City on 22 and 23 September 2018. The meeting in New York City was the second conference of the JIN and was jointly hosted by the US Bankruptcy Court for the Southern District of New York and the US Bankruptcy Court for the District of Delaware. The first conference was hosted by the Supreme Court of Singapore in October 2016. At the second conference, judges from close to 20 courts from around the world noted the importance to the international insolvency community of common principles and guidelines on cross-border insolvency matters prepared and agreed upon by judges from various key commercial jurisdictions. Building on the progress made thus far, the judges agreed to embark on four new projects.

1. Core principles on recognition of foreign insolvency proceedings
   
   To date, while over 40 jurisdictions have adopted the Model Law on Cross-Border Insolvency (the “Model Law”), an overwhelming majority of jurisdictions have not and different jurisdictions (including those that have adopted the Model Law) have varying approaches to the recognition of foreign insolvency proceedings. The judges agreed to produce a set of core principles on the recognition of foreign insolvency proceedings. A sub-committee of judges agreed to steer the direction of this JIN project.
   

2. Modalities of court-to-court communication
   
   Recognising the difficulties of communication between courts posed in no small part by language and cultural differences, the judges considered that it would also be useful to devise a set of modalities for court-to-court communication to guide international stakeholders on how courts from diverse backgrounds (such as those from civil and common law systems) could communicate effectively. A separate sub-committee of judges was formed to lead this project.
   

3. Guidelines when maritime law and insolvency law intersect, especially the arrest of ships and Articles 19, 20 and 21 of the Model Law
   
   Insolvency law, neither creating nor extinguishing rights, seeks to manage the rights of competing stakeholders in insolvency in an organised and collective manner amidst the interplay of a web of various private and international laws. Admiralty law is notably one of them where the interaction – or even conflict – between the two bodies of law for the satisfaction of claims has posed difficult problems. The judges therefore decided to look into this intractable area with focus on the arrest of vessels in the context of the Article 20 relief under the Model Law. Some of the judges with experience in admiralty law will take charge of this project.
   

4. Identification of insolvency disputes which parties should consider sending for alternative dispute resolution
   
   The JIN will also be examining how arbitration can be tapped for the resolution of certain insolvency matters for a more efficient resolution of disputes.