Law360 Quotes Richard Hornshaw on Proposed UNCITRAL Arbitration, Insolvency Case Coordination

For its article “UN To Take On Murky Intersection Of Arbitration & Insolvency,” Law360 quoted Akin Gump litigation partner Richard Hornshaw on a proposal to the United Nations Commission on International Trade Law (UNCITRAL) from a former U.S. bankruptcy judge and a German legal academic to improve coordination of insolvency and arbitration proceedings.

Hornshaw said that the current approach to handling concurrent arbitration and insolvency proceedings is very complicated, noting that the interaction between international arbitration and insolvency proceedings is already complex in a domestic context, to say nothing of the addition of an international component.

In that respect, he said, “This issue becomes significantly more difficult in a cross-border context: Identifying the proper law to determine the effect of insolvency proceedings upon an ongoing international arbitration can be problematic—one might look to the law of the contract, the law of the insolvency proceedings or the law of the seat of the arbitration.”