Demystifying Ancillary Winding-Up: Disapplying Local Substantive and Procedural Rules
11 Pages Posted: 7 Jan 2008
Date Written: January 6, 2008
The Scottish decision in Morris (Liquidator of Bank of Credit & Commerce International), Re Petition of The Bank of England is correct that an ancillary winding-up makes good sense and may disapply local procedural rules that do not serve any practical purpose. Owing to a misunderstanding of the English authorities and the principle of pari passu distribution, the Scottish court wrongly concluded that local substantive rules may not be disapplied.
Keywords: cross-border insolvency, principle of pari passu distribution, dis-applying local rules, ancillary winding-up, cross-border cooperation
JEL Classification: K10, K19, K20, K29, K30, K33, K39, K40, K41, K49
Suggested Citation: Suggested Citation