On Pari Passu, Equality and Hotchpot in Cross-Border Insolvency

19 Pages Posted: 12 Mar 2003

Multiple version iconThere are 2 versions of this paper

Abstract

The Privy Council decision in Cleaver v. Delta American Reinsurance confirmed the ingrained academic view that the application of the hotchpot rule in cross-border insolvency is underpinned by the principle of pari passu distribution. This paper ventures to uproot that ingrained view and demonstrate that the rationale behind the hotchpot rule has nothing to do with the pari passu rule. In addition, it will be shown that the substantive decision in Cleaver v. Delta American Reinsurance is untenable owing to a serious misunderstanding of No. 1213 of the New York Insurance Law.

Keywords: Pari passu, hotchpot, New York Insurance Law, pre-answer security, cross-border insolvency, bankruptcy, equality, priority, distribution policy, international insolvency

Suggested Citation

Ho, Look Chan, On Pari Passu, Equality and Hotchpot in Cross-Border Insolvency. Available at SSRN: https://ssrn.com/abstract=365660 or http://dx.doi.org/10.2139/ssrn.365660

Look Chan Ho (Contact Author)

Des Voeux Chambers ( email )

38/F Gloucester Tower
The Landmark
Central
Hong Kong
+852 2526 3071 (Phone)
+852 2810 5287 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
526
Abstract Views
2,973
rank
51,597
PlumX Metrics