Misunderstanding the Model Law: Re Stanford International Bank
Butterworths Journal of International Banking and Financial Law, Vol. 26, No. 7, p. 395, 2011
10 Pages Posted: 22 Jul 2011
This article seeks to show that the English Court of Appeal’s refusal to recognize the US receivership in Re Stanford International Bank is not faithful to the Cross-Border Insolvency Regulations 2006 and the decision’s precedential value is seriously questionable. The Court of Appeal’s reasoning is contrary to statutory mandate, in particular Article 8 of the UNCITRAL Model Law on Cross-Border Insolvency. Further, the ‘centre of main interests’ test in Stanford unjustifiably diverges from that under Chapter 15 of the US Bankruptcy Code.
Keywords: UNCITRAL Model Law on Cross-Border Insolvency, Chapter 15, Cross - Border Insolvency Regulations 2006, foreign main proceeding, centre of main interests, Ponzi scheme, US equity receivership
JEL Classification: K10, K12, K19, K20, K29, K30, K39, K40, K41, K49
Suggested Citation: Suggested Citation