Two recent bankruptcy court decisions - In re Serviços de Petróleo Constellation SA1 and In re Agrokor d.d.2 - demonstrate the increasing complexity of applying basic chapter 15 principles of “universalism” to global insolvency cases that span many jurisdictions. These decisions cast doubt on the meaning of the “universalism’s” approach to cross-border insolvency in multinational cases. As a theory of international insolvency, universalism envisions that a “main” court in the debtor’s “home” jurisdiction would administer the debtor’s insolvency proceeding, while “ancillary” courts in other jurisdictions where the debtor has assets or liabilities would assist by recognizing the main court’s orders and otherwise cooperating in aid of the main proceeding.

Originally published in ABI Journal - August 2019.