In the Press
September 15, 2023

Model Law Draftsman Responds to COMI Proposals (Global Restructuring Review)


Responding to a letter urging UNCITRAL to abolish the concept of centre of main interests (COMI), one of the architects of the Model Law on Cross-Border Insolvency has warned that changing the eligibility requirement for recognition will not eliminate the possibility of litigation by opportunistic opponents. Financial Restructuring of counsel Dan Glosband, tells GRR in a "preliminary" response to the proposals that UNCITRAL made the decision to adopt COMI and establishment requirements for recognition as a counterweight against “unbridled and potentially detrimental” forum shopping. “In the delegates’ consensus view, a debtor’s proceeding should be in a place where the debtor has an established economic presence so it cannot avoid its responsibilities to stakeholders by absconding to a hypothetical debtor-friendly forum,” Glosband says.