Guidelines for Communication and Cooperation between Courts in Cross-Border Insolvency Matters

On 1 February 2017, the Singapore Supreme Court and the US Bankruptcy Court for the District of Delaware, announced that they will formally implement the Guidelines for Communication and Cooperation between Courts in Cross-Border Insolvency Matters. This is the first time that a common framework has been adopted for courts to communicate and coordinate with each other in cross-border insolvency matters on a global level.

Prior to the existence of the Guidelines, any communication between courts was carried out on an ad hoc basis and there was great uncertainty over whether and how courts may communicate with each other when faced with cross-border insolvency cases.

The overarching objective of the Guidelines is to improve in the interests of all stakeholders the efficiency and effectiveness of cross-border proceedings relating to insolvency or adjustment of debt opened in more than one jurisdiction by enhancing coordination and cooperation among courts under whose supervision such proceedings are being conducted. The Guidelines can be consulted here.