Cross-border insolvency
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At Summit Law, we advise on all aspects of cross-border insolvency. Whether you’re dealing with a distressed overseas entity with UK connections, or a domestic insolvency with foreign limbs, we help you navigate complex multi-jurisdictional proceedings efficiently and effectively.
When insolvency crosses borders, you need clarity, speed and strategy. Call us now on 020 7467 3980 for a confidential consultation with our specialist cross-border insolvency lawyers.
What is cross-border insolvency?
Cross-border insolvency refers to situations where a debtor has assets, creditors, operations, or legal proceedings in more than one country. These cases often raise complex issues of jurisdiction, recognition, cooperation, and enforcement.
Common cross-border scenarios include:
- A Cayman company enters liquidation, but its primary asset is a London property
- A BVI-appointed liquidator seeks to examine directors residing in the UK
- A foreign trustee in bankruptcy needs to freeze or recover funds held in a UK bank account.
Our cross-border insolvency services
We provide a full-service offering for cross-border and international business insolvency matters, including:
Winding up foreign companies
We act for foreign insolvency officeholders, creditors, lenders and other stakeholders seeking to wind up foreign-registered companies with UK ties. We advise on all aspects of cross-border petitions, including evidence, COMI considerations, service requirements, and challenges to winding-up proceedings.
Placing foreign companies into administration
In limited cases, foreign companies with UK connections may be placed into administration. We advise on eligibility, court process, and strategic use of administration where UK-based assets or operations are involved.
Recognition orders
We regularly assist with recognition applications, which allow foreign officeholders to:
- Access the UK courts
- Stay enforcement action
- Take control of UK assets
- Facilitate cooperation across jurisdictions.
We manage recognition matters from start to finish, including evidence, drafting, and representation.
Requests for foreign assistance
We assist with both outbound and inbound requests between courts in different jurisdictions. This includes applications for asset recovery, witness examination, and document production.
Whether you’re a foreign officeholder seeking help from the English courts or a UK practitioner responding to a request from abroad, we provide clear, practical support.
Requesting evidence for foreign proceedings
We help insolvency practitioners obtain evidence located in England & Wales for use in foreign proceedings. This may involve applications for disclosure, document production or witness examination.
Recognition and enforcement of foreign judgments
We advise on the recognition and enforcement of foreign judgments in England & Wales, including those arising from insolvency and commercial litigation. Our team assesses enforceability, and helps enforce judgments using tools such as charging orders, third-party debt orders, and orders for sale.
Freezing injunctions and urgent relief
In cross-border insolvency, delay can result in the dissipation of valuable assets. We assist foreign officeholders in obtaining urgent relief, including:
- Freezing orders to preserve UK-based assets
- Norwich Pharmacal orders to trace funds or wrongdoing
- Disclosure applications to banks, intermediaries, or third parties.
We act quickly and discreetly to secure court orders that protect the insolvency estate and maximise recoveries.
Who our international insolvency lawyers can help
Our specialist insolvency lawyers advise on a broad spectrum of overseas insolvency practitioners, creditors, and stakeholders, including:
- Court-appointed liquidators and provisional liquidators
- Bankruptcy trustees and receivers
- Administrators of offshore entities with UK assets
- Lawyers acting for insolvency officeholders overseas
- Creditors and stakeholders seeking UK enforcement.
We provide legal solutions that align with your local appointment and cross-border objectives.
Key jurisdictions we work with
With many years experience, we advise across a wide range of established and emerging offshore and onshore jurisdictions. Our cross-border insolvency work spans:
- Caribbean jurisdictions: British Virgin Islands (BVI), Cayman Islands, Bermuda, Bahamas
- Crown Dependencies: Jersey, Guernsey, Isle of Man
- North America: United States, Canada, Mexico
- Europe: member states, Switzerland, Cyprus, and Luxembourg
- Middle East: UAE, Qatar Financial Centre (QFC), Bahrain, Saudi Arabia
- Asia-Pacific: Hong Kong, Singapore, Malaysia, Australia, New Zealand
- Africa: Mauritius, South Africa, Nigeria, and key offshore centres
- Latin America: Brazil, British Overseas Territories, and other UK-linked jurisdictions.
We are also experienced in complex multi-jurisdictional structures involving SPVs, trusts, investment vehicles and entities incorporated in high-risk or less conventional jurisdictions.
Key challenges in cross-border insolvency
Insolvency proceedings that span multiple jurisdictions present unique legal and logistical challenges. Common issues include:
- Jurisdictional uncertainty: Determining which court has jurisdiction and where main proceedings should be initiated can significantly affect the outcome. This is especially relevant where assets or creditors are spread across different countries.
- Governing law conflicts: Disputes may arise over which country’s insolvency law should apply, particularly where the debtor’s centre of main interests (COMI) is unclear or has shifted over time.
- Recognition of foreign proceedings: Without formal recognition under the Cross-Border Insolvency Regulations 2006, or other applicable mechanisms, foreign officeholders may be unable to enforce rights or access assets within the UK.
- Coordination between officeholders: When multiple insolvency practitioners are appointed in different jurisdictions, effective cooperation is essential to avoid duplication, delay, or loss of value to the estate.
- Court-to-court assistance: In many cases, help must be sought from the UK courts to compel disclosure, restrain dissipation of assets, or implement restructuring plans recognised elsewhere.
At Summit Law, we work closely with foreign insolvency practitioners to manage these challenges from the outset, providing clear advice on forum strategy, recognition procedures, and cross-jurisdictional cooperation.
Cross-border insolvency law
Cross-border insolvency law facilitates cooperation between jurisdictions when an insolvent individual or company has assets, creditors or operations in more than one country.
Key legal frameworks include:
The Cross-Border Insolvency Regulations 2006 (CBIR)
These Regulations implement the UNCITRAL Model Law, offering a formal route for recognising foreign insolvency proceedings in the UK. Recognition enables relief such as enforcement stays, asset control and cooperation orders. An application must be made by a “foreign representative”.
Section 426 of the Insolvency Act 1986
The section 426 provision allows courts in designated jurisdictions (primarily Commonwealth countries, the Channel Islands and the Isle of Man) to seek assistance from UK courts, which may apply either UK or foreign insolvency law as appropriate.
English common law
Common law provides a limited, discretionary route to recognising foreign proceedings, allowing UK courts to support a global insolvency process, where consistent with public policy.
Bilateral treaties and international conventions
Depending on the jurisdiction, international cooperation may also be available through evidence and enforcement treaties, such as the Hague Conventions.
Retained EU legislation
While the UK has left the EU Insolvency Regulation, it still applies to proceedings opened before 31 December 2020. Newer cases must rely on CBIR, section 426 or common law.
Extra-territorial provisions of the Insolvency Act 1986
Several domestic provisions within the Insolvency Act 1986 are particularly useful in international cases:
- Section 265: Permits bankruptcy petitions against individuals not domiciled in England & Wales if they recently lived or carried on business here.
- Section 236: Allows courts to order the production of documents relevant to insolvency, even if held abroad, provided there is a sufficient connection.
- Section 423: Enables challenges to transactions at an undervalue intended to defraud creditors, including those involving foreign assets or parties.
Together, these frameworks allow the English courts to play an active and cooperative role in global insolvency proceedings, supporting foreign officeholders, maximising creditor returns, and ensuring that the UK does not become a haven for misappropriated assets.
International insolvency FAQs
These UK regulations implement the UNCITRAL Model Law on Cross-Border Insolvency. They provide a framework for recognising foreign insolvency proceedings and facilitating cooperation between jurisdictions.
Yes, provided there is a sufficient connection to the jurisdiction, such as assets, creditors, or operations located in the UK. We can advise on the legal tests and evidential requirements.
Yes, often through a recognition order under the CBIR, followed by local enforcement mechanisms. We assist in locating, securing and recovering such assets.
Common law recognition is limited and more discretionary. CBIR recognition offers a statutory framework with defined processes and outcomes, including automatic stays and enforcement rights.
You must apply to the High Court, supported by evidence of the foreign insolvency proceeding and the appointment of the officeholder. We prepare and manage these applications from start to finish.
Yes. We advise on enforceability, procedure, and strategy for enforcing insolvency-related judgments in England & Wales.
Contact our international insolvency lawyers
Our insolvency lawyers combine technical insight, cross-jurisdictional awareness, and practical experience to deliver outstanding results for our clients. And with a proven track record assisting foreign officeholders, creditors and stakeholders, we will help you achieve the best outcome.
- CBIR expertise: We regularly handle recognition applications under the Cross-Border Insolvency Regulations 2006 and are familiar with the nuances of the UNCITRAL Model Law regime.
- Fast, strategic action: We move quickly to secure freezing orders, resist creditor claims, and gather evidence, often within tight timeframes.
- Cross-border coordination: We work closely with offshore lawyers, courts, and stakeholders to streamline international insolvency proceedings.
- High-stakes litigation support: We manage complex, high-value disputes with discretion and focus.
Need cross-border insolvency advice in the UK? Contact us today on 020 7467 3980 or complete our online enquiry form, and our international insolvency solicitors will be in touch.
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