Cross-Border Restructuring After Insolvency Reform

Recent reform to the UK's cross-border insolvency framework has changed the practical calculus for creditors coordinating recovery across multiple jurisdictions, particularly where the debtor's assets are concentrated outside the UK.

This paper examines how the reforms interact with existing cross-border recognition frameworks, and sets out a practical sequencing strategy for creditors: which jurisdiction to commence proceedings in, and in what order, to maximise both recognition and recovery.

Timing sequencing matters more than jurisdiction selection alone. Creditors who commence proceedings in the jurisdiction most likely to secure fast recognition elsewhere tend to preserve more optionality than those who default to the debtor's primary jurisdiction as a matter of habit.

We close with a decision framework co-developed with the firm's Insolvency & Restructuring practice, intended to help general counsel assess sequencing options within days, not weeks, of a cross-border insolvency event becoming apparent.