The Coordination Of Cross-border Insolvency And Limitation Of Liability Regime

Cross-border insolvency and limitation of liability regime are different legal systems,but in the case of shipping enterprises3 insolvency,the application of the two systems will overlap.There are many conflicts in terms of jurisdiction,procedure and substantial issues,such as whether the bankruptcy court will have jurisdiction over maritime cases concerning the insolvent debtor,whether the limitation of liability proceeding will be stayed due to the debtor’s insolvency,and whether the limitation fund established will be included in the insolvency estate and be distributed among the general creditors.The conflicts between cross-border insolvency and maritime law regime have been shown in a series of cases of multinational shipping companies’ insolvency,and the international community urgently needs effective ways to resolve conflicts between the two.This paper will focus on the conflicts between cross-border insolvency and limitation of liability in maritime cross-border insolvency cases and make recommendations on the coordination between the two.In the first chapter,the paper analyzes how the conflicts arise between insolvency and limitation of liability system in maritime cross-border insolvency cases.After clarifying the concept of maritime cross-border insolvency,this chapter introduces the cross-border insolvency and limitation of liability regime involved in maritime cross-border insolvency,and points out the conflicts between insolvency and limitation of liability from the perspective of jurisdiction,procedural law and substantial law.This chapter analyzes the reason why the conflicts arise in terms of differences of the aims of legislation,the particularity of maritime legal systems,and the lack of coordination in the process of internationalization of insolvency law.The second chapter mainly discusses the coordination of cross-border insolvency and limitation of liability on the intermational legislation level.Firstly,it introduces the status quo of intermational legislation on cross-border insolvency,and focuses on the restrictions on insolvency relief in the UNCITRAL Model Law on Cross-Border Insolvency and the applicable law rules in Recast Regulation 2015/848.Then,it discusses...