On 10 July 2023, the Government issued an update on its intention to implement two model laws relating to insolvency which have been adopted by the United Nations Commission on International Trade Law ("UNICITRAL").
The full update can be viewed here.
The two models proposed for implementation, would join and complement the Model Law on Cross Border Insolvency which the UK implemented in 2006 and 2007, are:
- Model Law on Recognition and Enforcement of Insolvency-Related Judgments, which deals with cross-border recognition of judgments that are associated with insolvency proceedings
- Model Law on Enterprise Group Insolvency, which provides tools to manage and coordinate insolvencies within corporate groups, whilst respecting that each company within the group remains a separate legal entity
The Government reports that implementing these models would develop the international framework for the management of cross-border insolvencies, and has announced that "it remains of the view that enacting the model laws will enhance the UK's highly regarded insolvency regime." The Government intends to develop the detail of the proposal to implement the two models, with the aim of resolving the issues that were raised by some of the respondents to the consultation before proceeding further.
It is notable that the Government also states in its update that it is looking to legislate to implement the models at the "earliest opportunity", and so we should expect to see a Draft Bill in the not-too-distant future.
