Judicial Cooperation in Corporate Rescue: Securing Capital for Distressed Businesses Across Borders

Overview

When a financially distressed company seeks rehabilitation, time is of the essence. The ability to raise rescue capital can mean the difference between successful restructuring and liquidation. However, in today’s globalised economy, companies increasingly operate across multiple jurisdictions, creating complex legal challenges that can impede urgent financing efforts.

As businesses expand internationally, their assets, creditors, and stakeholders are often dispersed across different Courts and legal systems. Here, effective coordination between courts to facilitate capital raising becomes essential. This seminar explores the critical role of cross-border judicial cooperation in facilitating the raising of rescue capital for companies undergoing rehabilitation processes and/or proceedings.

The panel will examine how harmonised insolvency frameworks, such as the UNCITRAL Model Law on Cross-Border Insolvency and the Judicial Insolvency Network, can enable courts to recognise foreign proceedings, coordinate relief measures, and provide the legal certainty investors and practitioners require. Key topics include:

• Recognition and enforcement of foreign rehabilitation proceedings – and how that differs in jurisdictions of panel members
• Coordination of stay orders and asset freezes across jurisdictions
• Protection of rescue financiers’ super-priority claims internationally
• Communication protocols between courts in different jurisdictions
• Challenges in non-harmonised jurisdictions and practical solutions