Transaction Avoidance in Bankruptcy of Corporate Groups
Abstract
The complex business structure of corporate groups has many legislative challenges. One such issue is the operation of avoidance provisions in the bankruptcy context. The paper investigates this matter focusing on the recent recommendations made by UNCITRAL in this area. The paper unearths the underlying principles of the new proposals against the backdrop of the “entity law” versus “enterprise law” debate (regarding groups regulation) and the general goals of bankruptcy laws, as well as considers the extent to which these proposals are desirable. The paper also discusses the relationship between avoidance provisions and other solutions for the bankruptcy of groups and the problems which arise where multiple jurisdictions are affected by voidable transactions.