Recognising an Australian Solvent Liquidation Under the Uncitral Model Law: In Re Betcorp

Abstract

US Bankruptcy Court in In re Betcorp held that an Australian solvent liquidation was entitled to recognition and assistance under Chapter 15 of the US Bankruptcy Code. However, the court's reasoning is highly questionable. In particular, it seemed to have overlooked the true nature of an Australian members' voluntary liquidation and the Australian legislative history when implementing the UNCITRAL Model on Cross-Border Insolvency in Australia.

An English court would probably reach a different result under the UK Cross-Border Insolvency Regulations 2006.

Keywords: UNCITRAL Model on Cross-Border Insolvency, Chapter 15 of the US Bankruptcy Code, Australian members' voluntary liquidation, solvent liquidation, UK Cross-Border Insolvency Regulations 2006

JEL Classification: K10, K19, K20, K22, K29, K30, K33, K39, K40, K49