CURRENT ISSUES OF THE INSTITUTE OF CROSS-BORDER BANKRUPTCY

Abstract

In modern conditions, the legal regulation of issues of cross-border insolvency of subjects of internationalprivate law is of particular importance due to the complication of the economic and foreign policy situationaround the world. In such conditions, urgent problems of protecting the rights and legitimate interestsof creditors acquire particular importance. The article deals with topical issues of the institution of crossborder bankruptcy and the tasks of improving insolvency procedures complicated by a foreign element.The authors identified the following most important and interesting problematic issues: 1) the problemof «bankrupt tourism» (and closely related issues of mutual recognition of court decisions and proceduralestoppel); 2) the problem of bringing the persons controlling the debtor to subsidiary liability; and 3) theproblematic aspects of conflict regulation of challenging and invalidating the debtor's transactions. Theauthors pay special attention to the complexity and ambiguous approaches to the choice of applicablelaw and appropriate bindings in such situations. As a result of studying Russian and foreign experience inapplying the norms of private international law in judicial practice in cases arising in the field of cross-borderbankruptcy, the authors came to the conclusion that the domestic legal framework for the legal regulation ofrelations in the field of cross-border bankruptcy needs further changes, primarily on the level of perceptionof universal or regional agreements, such as EU Regulation 20.05.2015 N 2015/848 (Recast), within whichmany contentious issues that arise when choosing the applicable law in matters of cross-border insolvency(bankruptcy) are settled. The Russian legislator should also pay close attention to the problems of crossborder insolvency in the current sanctions conditions, provide for mechanisms for the priority protection ofthe rights of domestic participants in economic turnover, while not excluding the positive foreign experienceof legal regulation in this area.