Lex fori concursus as the basic rule in the international bankruptcy

Čolović, Vladimir (2016) Lex fori concursus as the basic rule in the international bankruptcy. Strani pravni život : teorija, zakonodavstvo, praksa, 60 (4). pp. 85-98. ISSN 0039-2138

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Abstract

The rule lex fori concursus determines the law of place of the initiation of the bankruptcy proceeding as a law to be applied in these proceedings, i.e., that is the law of head office or branch of bankruptcy debtor or of the place where we can find debtor’s assets. Lex fori concursus is used as a basic rule of international bankruptcy, with which explains the conduct of the main and more secondary bankruptcy proceedings against the same debtor, as well as the interdependence of these proceedings. However, the Regulation 848/2015 on insolvency proceedings provides for the possibility of avoiding initiation of secondary bankruptcy proceedings. Then, creditors, charge their claims in the special proceedings which are not secondary bankruptcy proceeding. The trustee from the main bakruptcy proceeding decides about that. Also, the Regulation 848/2015 on insolvency proceedings provides for the possibility of initiation of bankruptcy proceeding against the member or members of affiliated companies. The paper explains the status and application of the rule lex fori concursus in these cases. Attention is paid to the application of this rule in the Model Law on Cross-Border Insolvency (UNCITRAL).

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