Bankruptcy and insolvency laws are essential components of a market economy. They enable entrepreneurs to take business risks, and provide a mechanism for treating creditors and other parties fairly in the event that a venture fails. As cross-border business activity has increased, so has the need to deal with cross-border business failures. This course surveys the issues that may arise when an enterprise that has operations, assets, employees, and creditors in more than one country becomes financially distressed. The course begins with an introduction to some basic international law concepts, including comity and choice of law, followed by an introduction to some fundamental principles of bankruptcy law and policy. The course will then turn to the issues that parties and courts have encountered in administering bankruptcies across national lines. Finally, the course will examine a number of ongoing international efforts to harmonize the laws that govern domestic and cross-border insolvency cases, including new Chapter 15 of the United States Bankruptcy Code, the EU Regulation on Insolvency Proceedings, and the UNCITRAL Legislative Guide on Insolvency.
Grading and Method of Evaluation:
Letter grade with pass/fail option. Final exam or take-home exam.
Debtors' and Creditors' Rights