Abstract
This chapter introduces the reader to the perquisites for recognition under the Model law namely: (a) centre of main interest (COMI); and (b) establishment and examines what is required for a foreign proceeding to be to fall within one of these definitions.
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- 1.
United Nations Commission on International Trade Law, General Assembly, Legislative Guide on Insolvency Law, UN Publications Sales No E.05.V.10 (United Nations, 2005), 41 [13].
- 2.
United Nations Commission on International Trade Law Guide to Enactment of The UNCITRAL Model Law on Cross-Border Insolvency UN Doc A/CN.9/442 [31, 72].
- 3.
See Fletcher, see footnote 42, 458 [8.23].
- 4.
Recital 13.
- 5.
Re Eurofood IFSC Ltd [2006] Ch 508, 528 [107].
- 6.
Ibid 530 [118].
- 7.
Ibid 531 [122]; Re Northsea Base Investments Ltd [2015] EWHC 121 (Ch).
- 8.
Re Interedil Srl [2012] Bus LR 1582, 1592 [51–53].
- 9.
Recital 30.
- 10.
Article 16(3).
- 11.
See Ackers v Saad Investment Company Ltd (in liq) (2010) 190 FCR 285; Williams v Simpson [2011] 2 NZLR 380; Re Stanford International Bank Ltd [2011] Ch 33 in which the courts followed the European Court of Justices decision Re Eurofood IFSC Ltd, [2006] Ch. 508.
- 12.
See Williams v Simpson [2011] 2 NZLR 380,395; Re Angiotech Pharmaceuticals Ltd (2011) 76 CBR (5th) 317 [7]; Re Massachusetts Elephant & Castle Group Inc (2011) 81 CBR (5th) 102 [30]; Re Sphinx Ltd, 351 BR 103, 117 (Bankr, SD NY, 2006.); Re Ran, 607 F. 3d 1017, 1022–1023 (5th Cir 2010).
- 13.
Collins et al., see footnote 158, 1766 [31–108].
- 14.
Judith May Wade, ‘Where is a corporation’s “centre of main interests” in international insolvency’ (2008) 16 Insolvency Law Journal 127, 144.
- 15.
Ho, see footnote 75, 194–200.
- 16.
Jay Westbrook, ‘Locating the Eye of the Financial Storm’ (2007) 32 Brooklyn Journal of International Law 1019, 1030–1.
- 17.
Ibid 1032.
- 18.
Ibid 1033–4.
- 19.
Re Eurofood IFSC Ltd [2006] Ch 508; Re Interedil Srl [2012] Bus LR 1582.
- 20.
Regulation EC No 848/2015 of the European Council on Insolvency Proceedings [2015] OJ L 141/19 recital 30.
- 21.
United Nations Commission on International Trade Law, Report of Working Group V (Insolvency Law) on the work of its forty-third session (Vienna, 15–19 April 2013) UN Doc A/CN.9/766 (26 April 2013), 7 [36]; United Nations Commission on International Trade Law, Interpretation and application of selected concepts of the UNCITRAL Model Law on Cross-Border Insolvency relating to centre of main interests (COMI) 43rd session, UN Doc A/CN.9/WG.V/WP.112, (11 February 2013) 21.
- 22.
Regulation EC No 848/2015 of the European Council on Insolvency Proceedings [2015] OJ L 141/19 recital 30.
- 23.
United Nations Commission on International Trade Law, UNCITRAL Model Law on Cross Border Insolvency with Guide to Enactment of The UNCITRAL Model Law on Cross-Border Insolvency (United Nations, 2014) 71 [145–147].
- 24.
United Nations Commission on International Trade Law, Report of Working Group V (Insolvency Law) on the work of its forty-third session (Vienna, 15–19 April 2013) UN Doc A/CN.9/766, 7 [39]; United Nations Commission on International Trade Law, Report of the United Nations Commission on International Trade Law 46th session (Vienna, 8–26 July 2013) UN Doc A/68/17; United Nations Commission on International Trade Law, Interpretation and application of selected concepts of the UNCITRAL Model Law on Cross-Border Insolvency relating to centre of main interests (COMI) forty third session, UN Doc A/CN.9/WG.V/WP.112 (11 February 2013) 21–2; Revision of the Guide to Enactment of the Model Law on Cross-Border Insolvency GS Res 68/107 UN GOAR 68th sess, UN Doc A/Res/68/107A (16 December 2013); United Nations Commission on International Trade Law, UNCITRAL Model Law on Cross Border Insolvency with Guide to Enactment of The UNCITRAL Model Law on Cross-Border Insolvency (United Nations, 2014).
- 25.
See generally, Look Chan Ho, ‘The Revised UNCITRAL Model Law Enactment Guide—A Welcome Product?’ [2014] Journal of International Banking Law and Regulation 325.
- 26.
United Nations Commission on International Trade Law, Report of Working Group V (Insolvency Law) on the work of its forty-third session (Vienna, 15–19 April 2013) UN Doc A/CN.9/766, 21 (26 April 2013) [123A]; United Nations Commission on International Trade Law, Interpretation and application of selected concepts of the UNCITRAL Model Law on Cross-Border Insolvency relating to centre of main interests (COMI) forty third session, UN Doc A/CN.9/WG.V/WP.112 (11 February 2013) 7 [36].
- 27.
Cross-Border Insolvency Regulations 2006 SR 2006/1030 reg 2(2)(c).); see generally, Fibria Celulose S/A v Pan Ocean Co Ltd [2014] EWHC 2124 (Ch) (30 June 2014) [88].
- 28.
Insolvency (Cross-border) Act 2006 s 5.
- 29.
Janis Sarra ‘Oversight and Financing of Cross-Border Business Enterprise Group Insolvency Proceedings’ (2009) 44 Texas International Law Journal 547, 558.
- 30.
Virgos & Schmidt, see footnote 26 [71].
- 31.
Ibid.
- 32.
Gainsford v Tannenbaum (2012) 293 ALR 699 [51].
- 33.
Wild v Coin Co International PLC (Administrators Appointed) [2015] FCA 354 (16 April 2015) [66].
- 34.
Williams v Simpson [2011] 2 NZLR 380 at 393 quoting paragraph [71] of the Virgos-Schmidt Report.
- 35.
Re Office Metro Limited [2012] BCC 829, 839 [33].
- 36.
The Trustees of the Olympic Airlines SA Pension & Life Insurance Scheme v Olympic Airlines SA [2013] 2 BCLC 171; [2013] EWCA Civ 643 (6 June 2013) [31].
- 37.
Ibid [32].
- 38.
Lord Collins et al., see footnote 158, 1634 [30–186].
- 39.
US House of Representatives Committee on the Judiciary, United States Congress, Bankruptcy Abuse Prevention and Consumer Protection Act (8 April 2005), HR Report Pub L No 109–31.
- 40.
Re British American Insurance Co Ltd, 425 BR 884, 915 (Bankr, SD Fla, 2010).
- 41.
Re Ran, 607 F 3d 1017, 1028 (5th Cir, 2010).
- 42.
Moore v Australian Equity Investors (2012) 30 ACLC 629, 633) [18]; Young v Buccaneer Energy Ltd [2014] FCA 711 (2 July 2014) [5]; Re British American Insurance Co Ltd 425 BR 884, 910 (Bankr, SD Fla, 2010).
- 43.
Young v Buccaneer Energy Ltd [2014] FCA 711 (2 July 2014) [5].
- 44.
Gainsford v Tannenbaum (2012) 293 ALR 699, 711 [44].
- 45.
Williams v Simpson [2011] 2 NZLR 380, 396 [65]; Re Office Metro Limited [2012] BCC 829, 838 [27]; Re British American Isle of Venice (BVI) Ltd 441 BR 713, 720–21 (Bankr SD Fla, 2010); Re Ran, 607 F. 3d 1017,1025 (5th Cir 2010), Re Betcorp Ltd, 400 BR 266, 290–2 (Bankr, D Nev, 2009); The Trustees of the Olympic Airlines SA Pension & Life Insurance Scheme v Olympic Airlines SA [2013] 2 BCLC 171; [2013] EWCA Civ 643 (6 June 2013) [35].
- 46.
Re Fairfield Sentry Ltd 714 F 3d 127 (2nd Cir 2013) 137.
- 47.
Re British American Insurance Co Ltd, 425 BR 884, 910 (Bankr, SD Fla, 2010).
- 48.
See Lavie v Ran 406 BR 277, 284-5 (Dist, SD Tex, 2009); Re British American Insurance Co Ltd 425 BR 884, 915–6 (Bankr, SD Fla, 2010).
- 49.
Re Stanford International Bank Ltd [2011] Ch 33, 59 [30].
- 50.
Re Millennium Global Emerging Credit Master Fund Ltd, 458 BR 63, 76 (Bankr, SD NY, 2011); Re Gerova Financial Group Ltd, 482 BR 86 (Bankr, SD NY, 2012); Re Kemsley 489 BR 346, 359–60 (Bankr, SD NY, 2013); Contra Re Fairfield Sentry Ltd, 714 F 3d 127 (2nd Cir 2013) 134–5.
- 51.
United Nations Commission on International Trade Law, Guide to Enactment of The UNCITRAL Model Law on Cross-Border Insolvency, UN Doc A/CN.9/442 (19 December 1997) as approved by GA Res A/RES/52/158 (1997) (30 January 1998) and amended by GA Res A/RES/68/107 (2013) (16 December 2013) [141].
- 52.
United Nations Commission on International Trade Law, Report of Working Group V (Insolvency Law) on the work of its forty-third session (Vienna, 15–19 April 2013) UN Doc A/CN.9/766 (26 April 2013) 7; United Nations Commission on International Trade Law, Report of the United Nations Commission on International Trade Law 46th session (Vienna, 8–26 July 2013) UN Doc A/68/17; United Nations Commission on International Trade Law, Interpretation and application of selected concepts of the UNCITRAL Model Law on Cross-Border Insolvency relating to centre of main interests (COMI) forty third session, UN Doc A/CN.9/WG.V/WP.112 (11 February 2013) 25; Revision of the Guide to Enactment of the Model Law on Cross-Border Insolvency GS Res 68/107 UN GOAR 68th sess, UN Doc A/Res/68/107A (16 December 2013).
- 53.
See discussion in Sect. 5.2.
- 54.
See Re Bear Stearns High Grade Structured Credit Strategies Master Fund Ltd, 374 BR 122 (Bankr, SD NY, 2007); Re Bear Stearns High-Grade Structured Credit, 389 B.R 325 (Dist SD NY, 2008).
- 55.
John A.E Pottow, ‘The Myth (and Realities) of Forum Shopping in Transnational Insolvency’ (2006) 32 Brooklyn Journal of International Law 785, 797–802, 805–6; Hoffman v Bullmore (Re National Warranty Insurance Risk Retention Group) 306 BR 614 (BAP, 8th Cir, 2004) affirmed 384 F.3d 959 (8th Cir, 2004).
- 56.
See Re Skase (1991) 32 FCR 212, 213; Re Skase, Ex parte Donnelly (1992) 37 FCR 509, 510; Shierson v Vlieland-Boddy [2005] 1 WLR 3966, [5–10].
- 57.
Gainsford v Tannenbaum (2012) 293 ALR 699, 700–2.
- 58.
Re Interedil Srl [2012] Bus LR 1582, 1592–3 [55]; Re Staubitz-Schreiber [2006] BCC 639.
- 59.
Re Staubitz-Schreiber [2006] BCC 639, 644 [24].
- 60.
Judith May Wade, ‘Where is a corporation’s “centre of main interests” in international insolvency’ (2008) 16 Insolvency Law Journal 127, 136.
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Hannan, N. (2017). Concepts of Centre of Main Interest and Establishment. In: Cross-Border Insolvency. Springer, Singapore. https://doi.org/10.1007/978-981-10-5876-9_5
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