The Impact Of Bankruptcy On International Commercial Arbitraiton

With the global flow of economic factors,multinational corporations have become an important subject of international economic law.The business mode of multinational corporations have challenged the traditional legal system based on geography.Transnational bankruptcy has become a problem facing all countries in the world.At the same time,for reasons of neutrality,and economy,international arbitration is increasingly used as a method of dispute resolution.This raises the question of whether the international arbitration procedure needs to be suspended or terminated when the party goes bankrupt in the other country.In fact,this issue has exposed the conflict between bankraptcy and arbitration.The goal of the bankruptcy regulation is to ensure the fair compensation of all creditors in order to achieve overall justice.Arbitration is to realize the individual's right in order to achieve individual justice.The aims of the two systems are different,but they often cross in practice,for exemple,in the Elektrim v.Vivendi case.This paper analyzes the rulings of the LCIA arbitral tribunal and the ICC arbitral tribunal irn the Elektrim v.Vivendi case.In the logical order,the arbitral tribunal first recognizes the extraterritorial effect of the bankruptcy;and then explores the effect of the bankruptcy procedure on the arbitration agreement;and finally,determine the impact of "automatic stay" on the arbitral proceedings.In respect of the structure,this paper consists of five chapters.The first chapter introduces the Elektrim v.Vivendi case,which reveals the conflict between international commercial arbitration and transnational bankruptcy.The second,third and fourth chapters analyze the impact of bankruptcy on the arbitration procedure from the perspective of the international commercial arbitration tribunal.The fifth chapter talks about the lessons drawn from the Elektrim v.Vivendi case in order to obtain some instructions for international arbitral tribunals seated in China when confronting with the situation of cross-border insolvency.