The Future of Cross-Border Insolvency: Overcoming Biases and Closing Gaps

ISBN : 9780198782896

Irit Mevorach
336 ページ
156 x 234 mm

A fresh and insightful guide to post-financial crisis cross-border insolvency, this book interrogates the current regime and sets out a pattern to improve its future. In recent decades, and especially since the global financial crisis, a number of important initiatives have focused on developing effective solutions for managing the insolvency of multinational enterprises and financial institutions. Irit Mevorach here takes stock of the varying success of previous policy, and identifies the gaps and biases that could be bridged by a new approach.

The book first sets out the theoretical debates regarding cross-border insolvency and surveys the strengths and weaknesses of the prevailing method - modified universalism - synthesizing divergences into a rubric for both commercial entities and financial institutions. Adhering to these norms more robustly, Mevorach argues, would enhance global welfare and produce the best outcomes for businesses and institutions.

Drawing upon sources from international law as well as behavioural and economic theory, Mevorach considers how to translate modified universalism into binding international law and how to choose the right instrument for cross-border insolvency; the impact instrument design has on decisions and choices, and how to encourage compliance. In particular, the book proposes tools and mechanisms that could potentially overcome, or at least take into account, behavioural biases in decision-making in order to create a system that works for businesses, and offers a blueprint for the future of cross-border insolvency.


1 Modified Universalism To Date; 2 The Debiasing Role of the Cross-Border Insolvency System; 3 Modified Universalism as Customary International Law; 4 Instrument Choice and Design; 5 A Normative Framework for Promoting Compliance; 6 Assessment of International Instruments; 7 Conclusion: The Future of Cross-Border Insolvency


Irit Mevorach is Professor of International Commercial Law at the University of Nottingham. From 1998-2003, Irit practised at Lipa Meir & Co, Tel-Aviv. Since 2006 Irit has been an expert adviser to the UK delegation to UNCITRAL. In 2013, she was appointed Senior Counsel to the World Bank. In that capacity, she has advised governments of some ten countries in Africa, Asia, Europe, and the Caribbean on the reform of business, personal insolvency, and creditor/debtor systems, and has led the Bank's Global Task Force on Insolvency and Creditor Rights. Her book Insolvency within Multinational Enterprise Groups (OUP, 2009) won an Edwin Coe/INSOL Europe Prize for Outstanding Legal Scholarship (2010).