Vol 23 (2026) - Issue 5

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From Sturgeon to Ascentra: Solvent Liquidations and the Scope of the UNCITRAL Model Law

Synopsis
One of the most unsettled questions in cross-border insolvency is whether a solvent liquidation can be recognised as a 'foreign proceeding' under The UNCITRAL Model Law on Cross-Border Insolvency ('Model Law').
The answer has divided courts across jurisdictions, with implications for liquidators, creditors, investors, and other stakeholders engaged in multi-jurisdictional disputes.
Having acted for the Bermudian liquidators in the Sturgeon litigation in England & Wales, I have followed with interest the subsequent case-law developments in the United States (Global Cord Blood) and Singapore (Ascentra), as well as commentary elsewhere.
Against a background where jurisdictions consider the adoption of the Model Law to be a key component of demonstrating alignment with standard international practices (Malaysia a recent example), the current divergence regarding the recognition of solvent liquidations is far from satisfactory.