Issues in Insolvency of Enterprise Groups

DOI10.1177/2277401719870006
Publication Date01 June 2019
Date01 June 2019
AuthorRisham Garg
SubjectArticles
Article
Issues in Insolvency of
Enterprise Groups
Risham Garg1
Abstract
Insolvency of enterprise groups has long remained an enigmatic and untouched
issue in the realm of international insolvency law. Recently, the Working Group
V of United Nations Commission on International Trade Law (UNCITRAL WG
V) has taken up the onerous task to fill this void and to draft an instrument/
model law to govern international aspects of insolvency resolution of enterprise
groups (two or more enterprises that are interconnected by control or signifi-
cant ownership)2 including obligations of directors of enterprise group compa-
nies for acts done in the ‘twilight zone’. This article attempts to introduce and
outline certain key issues relating to insolvency resolution of enterprise group
companies and discuss a few of them, reserving a comprehensive discussion
shared in subsequent papers.
Keywords
Insolvency and Bankruptcy Code, 2016, enterprise groups, MNCs
Insolvencies of Transnational Enterprise Groups
An enterprise group has been loosely defined in Part III of the UNCITRAL
Legislative Guide on Insolvency3 as ‘two or more enterprises that are intercon-
nected by control or significant ownership’. The interdependence of group
members across jurisdictions, especially financial interdependence, attracts pro-
visions of the cross-border insolvency law framework. The key dilemma with
2 U.N. CommN oN INtl trade law, UNCItral’s legIslatIve gUIde oN INsolveNCy law, Part
three: treatmeNt of eNterPrIse groUPs IN INsolveNCy 2, U.N. Sales No. E.12.V.16 (2012), https://
www.uncitral.org/pdf/english/texts/insolven/Leg-Guide-Insol-Part3-ebook-E.pdf
3 Id.
Journal of National
Law University Delhi
6(1) 50–64, 2019
2019 National Law
University Delhi
Reprints and permissions:
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DOI: 10.1177/2277401719870006
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1 Associate Professor, National Law University, Delhi, India.
Corresponding author:
Risham Garg, Associate Professor, National Law University, Delhi, India.
E-mail: Risham.Garg@nludelhi.ac.in

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