File #2602: "2019_Book_MaritimeCross-BorderInsolvency.pdf"
Text
1|Acknowledgments|6
1|Contents|7
1|Abbreviations|9
1|Chapter 1: Introduction|13
2|References|16
1|Chapter 2: Cross-Border Insolvencies|17
2|2.1 Insolvency Laws|18
3|2.1.1 History of Insolvency Law|19
4|2.1.1.1 Germany|20
4|2.1.1.2 Common Law: England & Wales and USA|21
5|2.1.1.2.1 England & Wales|21
5|2.1.1.2.2 USA|22
4|2.1.1.3 Summary|24
3|2.1.2 Insolvency Law Principles and Basic Features Compared|24
4|2.1.2.1 Principles and Basic Features in Germany|25
5|2.1.2.1.1 Best Possible Satisfaction of a Debtor’s Creditors|26
5|2.1.2.1.2 Collective Satisfaction of a Debtor’s Creditors|26
5|2.1.2.1.3 Insolvency Priority Scheme|27
5|2.1.2.1.4 Encouragement of Reorganisation|27
5|2.1.2.1.5 Reasons to Open Insolvency Proceedings|29
5|2.1.2.1.6 Insolvency Court|30
5|2.1.2.1.7 Creditors’ Autonomy|32
6|2.1.2.1.7.1 Creditors’ Assembly|32
6|2.1.2.1.7.2 Creditors’ Committee|33
5|2.1.2.1.8 Insolvency Administrator|33
4|2.1.2.2 Principles and Basic Features in England & Wales|35
5|2.1.2.2.1 The Pari Passu Principle|36
5|2.1.2.2.2 Insolvency Priority Scheme|38
5|2.1.2.2.3 Insolvency Tests|38
5|2.1.2.2.4 Liquidation|39
5|2.1.2.2.5 Rescue of the Insolvent Company|40
6|2.1.2.2.5.1 Administration|41
6|2.1.2.2.5.2 Company Voluntary Arrangement|43
6|2.1.2.2.5.3 Scheme of Arrangement|44
4|2.1.2.3 Principles and Basic Features in the USA|47
5|2.1.2.3.1 The Bankruptcy Court|47
5|2.1.2.3.2 Pari Passu|48
5|2.1.2.3.3 Insolvency Priority Scheme|48
5|2.1.2.3.4 Initiation of the Insolvency Proceeding and Automatic Stay|49
5|2.1.2.3.5 Chapter 11: Reorganisation of the Debtor|51
5|2.1.2.3.6 Chapter 7: Liquidation|53
3|2.1.3 Summarising Comparison on Principles and Basic Features|53
2|2.2 Cross-Border Insolvency|54
3|2.2.1 Introduction|54
3|2.2.2 Legal Theories on Cross-Border Insolvency|56
4|2.2.2.1 Territorialism|56
4|2.2.2.2 Universalism|57
4|2.2.2.3 Theories in Practice|57
4|2.2.2.4 Modification of the Universalist and Territorialist Approaches|59
3|2.2.3 Cross-Border Insolvency Laws|61
4|2.2.3.1 National Law|61
5|2.2.3.1.1 Germany|61
5|2.2.3.1.2 England & Wales|63
5|2.2.3.1.3 USA|64
4|2.2.3.2 EU Law|67
4|2.2.3.3 Laws and Guidelines of International Institutions|69
5|2.2.3.3.1 UNCITRAL Model Law on Cross-Border Insolvency|69
5|2.2.3.3.2 Global Principles for Cooperation in International Insolvency Cases|71
2|2.3 Conclusion: Insolvency Laws and Cross-Border Insolvency|72
2|References|73
1|Chapter 3: The Maritime Industry and the Peculiarity of Maritime Liens|77
2|3.1 Maritime Industry|78
3|3.1.1 Shipping Industry|78
4|3.1.1.1 History|78
4|3.1.1.2 Global Industry|79
3|3.1.2 Lasting Crisis in Shipping|80
3|3.1.3 Peculiarities of the Shipping Industry|81
4|3.1.3.1 Operation of the Ship|81
4|3.1.3.2 Risk Management|83
4|3.1.3.3 Financing of the Ship|84
2|3.2 Maritime Liens|85
3|3.2.1 Introduction to Maritime Liens|86
3|3.2.2 Origins of Maritime Liens|87
3|3.2.3 Legal Nature of Maritime Liens|87
3|3.2.4 Maritime Liens Under German Law|88
4|3.2.4.1 Regulations in the German Commercial Code|88
4|3.2.4.2 Claims Secured by Maritime Liens|88
4|3.2.4.3 Enforcement and Extinction of Maritime Liens|89
4|3.2.4.4 Ranking and Priority of German Maritime Liens|91
4|3.2.4.5 Recognition of Foreign Maritime Liens|92
5|3.2.4.5.1 Art. 45 EGBGB|92
5|3.2.4.5.2 Priority Rules on Foreign Maritime Liens|95
5|3.2.4.5.3 Extinction of Foreign Maritime Liens|96
3|3.2.5 Maritime Liens Under English Law|96
4|3.2.5.1 Legal Nature of English Maritime Liens|96
4|3.2.5.2 Statutory Liens|97
4|3.2.5.3 Claims Secured by Maritime Liens|98
4|3.2.5.4 Enforcement and Extinction of Maritime Liens|99
4|3.2.5.5 Ranking and Priority of Maritime Liens in England & Wales|100
4|3.2.5.6 Recognition of Foreign Maritime Liens|102
3|3.2.6 Maritime Liens Under US Law|102
4|3.2.6.1 Regulations in Chapter 313 of Title 46 of the United States Code|103
4|3.2.6.2 Claims Secured by Maritime Liens|104
4|3.2.6.3 Maritime Liens for Necessaries|104
4|3.2.6.4 Enforcement and Extinction of Maritime Liens|106
4|3.2.6.5 Ranking and Priority of US Maritime Liens|107
4|3.2.6.6 Recognition of Foreign Maritime Liens|108
3|3.2.7 Status of Maritime Liens in Insolvency Proceedings|110
3|3.2.8 International Unification|112
2|3.3 Conclusion: Maritime Liens as Sources of Conflict of Laws?|113
2|References|114
1|Chapter 4: Maritime Cross-Border Insolvency and Harmonisation|117
2|4.1 Maritime Insolvency|118
3|4.1.1 ‘Ship Insolvency’|118
4|4.1.1.1 Number of Ship Insolvencies in Germany, England & Wales and USA|119
4|4.1.1.2 Number of Ship Arrests|120
3|4.1.2 Where to File for Insolvency?|120
4|4.1.2.1 Definition of COMI|121
4|4.1.2.2 The COMI of a Ship|122
4|4.1.2.3 Flexibility of COMI|123
3|4.1.3 A “Safe Harbour” for Distressed Shipping Companies|125
4|4.1.3.1 US Chapter 11 for Financially Distressed Shipping Companies|125
4|4.1.3.2 English Scheme of Arrangement for Financially Distressed Shipping Companies|129
3|4.1.4 Interim Result|130
2|4.2 Issues in Maritime Insolvency|131
3|4.2.1 Maritime Insolvency in Germany|132
4|4.2.1.1 Forum Shopping in North Germany|132
4|4.2.1.2 The Preliminary Phase in a Ship Insolvency Proceeding|133
3|4.2.2 Maritime Insolvency in England & Wales|136
3|4.2.3 Maritime Insolvency in the USA|137
4|4.2.3.1 Admiralty Court vs. Bankruptcy Court|138
4|4.2.3.2 The Conflict of Admiralty Arrest and the Automatic Stay|140
4|4.2.3.3 Changing the Status of Maritime Security Interests in Insolvency Proceedings|142
3|4.2.4 Conclusion on Maritime Cross-Border Insolvency|144
2|4.3 Maritime Insolvency Under Existing Harmonisation Rules|145
3|4.3.1 EU Insolvency Regulation and Maritime Insolvency|145
3|4.3.2 UNCITRAL Model Law on Cross-Border Insolvency and Maritime Insolvency|148
3|4.3.3 Results on Existing Harmonisation Rules|149
2|4.4 Alternative Harmonisation Rules for Maritime Insolvency|149
3|4.4.1 Private Harmonisation Rules|150
3|4.4.2 CMI Approach|152
3|4.4.3 A “Middle Path of Reciprocal Comity”|154
3|4.4.4 The Hanjin Insolvency: A Test for International Insolvency Law|157
3|4.4.5 Conclusion on Alternative Harmonisation Rules for Maritime Insolvency|159
2|References|161
1|Chapter 5: Conclusion|163
1|Contents|7
1|Abbreviations|9
1|Chapter 1: Introduction|13
2|References|16
1|Chapter 2: Cross-Border Insolvencies|17
2|2.1 Insolvency Laws|18
3|2.1.1 History of Insolvency Law|19
4|2.1.1.1 Germany|20
4|2.1.1.2 Common Law: England & Wales and USA|21
5|2.1.1.2.1 England & Wales|21
5|2.1.1.2.2 USA|22
4|2.1.1.3 Summary|24
3|2.1.2 Insolvency Law Principles and Basic Features Compared|24
4|2.1.2.1 Principles and Basic Features in Germany|25
5|2.1.2.1.1 Best Possible Satisfaction of a Debtor’s Creditors|26
5|2.1.2.1.2 Collective Satisfaction of a Debtor’s Creditors|26
5|2.1.2.1.3 Insolvency Priority Scheme|27
5|2.1.2.1.4 Encouragement of Reorganisation|27
5|2.1.2.1.5 Reasons to Open Insolvency Proceedings|29
5|2.1.2.1.6 Insolvency Court|30
5|2.1.2.1.7 Creditors’ Autonomy|32
6|2.1.2.1.7.1 Creditors’ Assembly|32
6|2.1.2.1.7.2 Creditors’ Committee|33
5|2.1.2.1.8 Insolvency Administrator|33
4|2.1.2.2 Principles and Basic Features in England & Wales|35
5|2.1.2.2.1 The Pari Passu Principle|36
5|2.1.2.2.2 Insolvency Priority Scheme|38
5|2.1.2.2.3 Insolvency Tests|38
5|2.1.2.2.4 Liquidation|39
5|2.1.2.2.5 Rescue of the Insolvent Company|40
6|2.1.2.2.5.1 Administration|41
6|2.1.2.2.5.2 Company Voluntary Arrangement|43
6|2.1.2.2.5.3 Scheme of Arrangement|44
4|2.1.2.3 Principles and Basic Features in the USA|47
5|2.1.2.3.1 The Bankruptcy Court|47
5|2.1.2.3.2 Pari Passu|48
5|2.1.2.3.3 Insolvency Priority Scheme|48
5|2.1.2.3.4 Initiation of the Insolvency Proceeding and Automatic Stay|49
5|2.1.2.3.5 Chapter 11: Reorganisation of the Debtor|51
5|2.1.2.3.6 Chapter 7: Liquidation|53
3|2.1.3 Summarising Comparison on Principles and Basic Features|53
2|2.2 Cross-Border Insolvency|54
3|2.2.1 Introduction|54
3|2.2.2 Legal Theories on Cross-Border Insolvency|56
4|2.2.2.1 Territorialism|56
4|2.2.2.2 Universalism|57
4|2.2.2.3 Theories in Practice|57
4|2.2.2.4 Modification of the Universalist and Territorialist Approaches|59
3|2.2.3 Cross-Border Insolvency Laws|61
4|2.2.3.1 National Law|61
5|2.2.3.1.1 Germany|61
5|2.2.3.1.2 England & Wales|63
5|2.2.3.1.3 USA|64
4|2.2.3.2 EU Law|67
4|2.2.3.3 Laws and Guidelines of International Institutions|69
5|2.2.3.3.1 UNCITRAL Model Law on Cross-Border Insolvency|69
5|2.2.3.3.2 Global Principles for Cooperation in International Insolvency Cases|71
2|2.3 Conclusion: Insolvency Laws and Cross-Border Insolvency|72
2|References|73
1|Chapter 3: The Maritime Industry and the Peculiarity of Maritime Liens|77
2|3.1 Maritime Industry|78
3|3.1.1 Shipping Industry|78
4|3.1.1.1 History|78
4|3.1.1.2 Global Industry|79
3|3.1.2 Lasting Crisis in Shipping|80
3|3.1.3 Peculiarities of the Shipping Industry|81
4|3.1.3.1 Operation of the Ship|81
4|3.1.3.2 Risk Management|83
4|3.1.3.3 Financing of the Ship|84
2|3.2 Maritime Liens|85
3|3.2.1 Introduction to Maritime Liens|86
3|3.2.2 Origins of Maritime Liens|87
3|3.2.3 Legal Nature of Maritime Liens|87
3|3.2.4 Maritime Liens Under German Law|88
4|3.2.4.1 Regulations in the German Commercial Code|88
4|3.2.4.2 Claims Secured by Maritime Liens|88
4|3.2.4.3 Enforcement and Extinction of Maritime Liens|89
4|3.2.4.4 Ranking and Priority of German Maritime Liens|91
4|3.2.4.5 Recognition of Foreign Maritime Liens|92
5|3.2.4.5.1 Art. 45 EGBGB|92
5|3.2.4.5.2 Priority Rules on Foreign Maritime Liens|95
5|3.2.4.5.3 Extinction of Foreign Maritime Liens|96
3|3.2.5 Maritime Liens Under English Law|96
4|3.2.5.1 Legal Nature of English Maritime Liens|96
4|3.2.5.2 Statutory Liens|97
4|3.2.5.3 Claims Secured by Maritime Liens|98
4|3.2.5.4 Enforcement and Extinction of Maritime Liens|99
4|3.2.5.5 Ranking and Priority of Maritime Liens in England & Wales|100
4|3.2.5.6 Recognition of Foreign Maritime Liens|102
3|3.2.6 Maritime Liens Under US Law|102
4|3.2.6.1 Regulations in Chapter 313 of Title 46 of the United States Code|103
4|3.2.6.2 Claims Secured by Maritime Liens|104
4|3.2.6.3 Maritime Liens for Necessaries|104
4|3.2.6.4 Enforcement and Extinction of Maritime Liens|106
4|3.2.6.5 Ranking and Priority of US Maritime Liens|107
4|3.2.6.6 Recognition of Foreign Maritime Liens|108
3|3.2.7 Status of Maritime Liens in Insolvency Proceedings|110
3|3.2.8 International Unification|112
2|3.3 Conclusion: Maritime Liens as Sources of Conflict of Laws?|113
2|References|114
1|Chapter 4: Maritime Cross-Border Insolvency and Harmonisation|117
2|4.1 Maritime Insolvency|118
3|4.1.1 ‘Ship Insolvency’|118
4|4.1.1.1 Number of Ship Insolvencies in Germany, England & Wales and USA|119
4|4.1.1.2 Number of Ship Arrests|120
3|4.1.2 Where to File for Insolvency?|120
4|4.1.2.1 Definition of COMI|121
4|4.1.2.2 The COMI of a Ship|122
4|4.1.2.3 Flexibility of COMI|123
3|4.1.3 A “Safe Harbour” for Distressed Shipping Companies|125
4|4.1.3.1 US Chapter 11 for Financially Distressed Shipping Companies|125
4|4.1.3.2 English Scheme of Arrangement for Financially Distressed Shipping Companies|129
3|4.1.4 Interim Result|130
2|4.2 Issues in Maritime Insolvency|131
3|4.2.1 Maritime Insolvency in Germany|132
4|4.2.1.1 Forum Shopping in North Germany|132
4|4.2.1.2 The Preliminary Phase in a Ship Insolvency Proceeding|133
3|4.2.2 Maritime Insolvency in England & Wales|136
3|4.2.3 Maritime Insolvency in the USA|137
4|4.2.3.1 Admiralty Court vs. Bankruptcy Court|138
4|4.2.3.2 The Conflict of Admiralty Arrest and the Automatic Stay|140
4|4.2.3.3 Changing the Status of Maritime Security Interests in Insolvency Proceedings|142
3|4.2.4 Conclusion on Maritime Cross-Border Insolvency|144
2|4.3 Maritime Insolvency Under Existing Harmonisation Rules|145
3|4.3.1 EU Insolvency Regulation and Maritime Insolvency|145
3|4.3.2 UNCITRAL Model Law on Cross-Border Insolvency and Maritime Insolvency|148
3|4.3.3 Results on Existing Harmonisation Rules|149
2|4.4 Alternative Harmonisation Rules for Maritime Insolvency|149
3|4.4.1 Private Harmonisation Rules|150
3|4.4.2 CMI Approach|152
3|4.4.3 A “Middle Path of Reciprocal Comity”|154
3|4.4.4 The Hanjin Insolvency: A Test for International Insolvency Law|157
3|4.4.5 Conclusion on Alternative Harmonisation Rules for Maritime Insolvency|159
2|References|161
1|Chapter 5: Conclusion|163