Preface by the Chairman

Another opinion, which eventually received the endorsement of the Working Group, was that solutions should be sought on the basis of the following principles recognition of both main and non main proceedings availability of appropriate relief in both types of proceedings primacy of the main proceeding over non main proceedings limits as to the consequences of non main proceedings and coordination between main and non main proceedings.

Another proposal was to distinguish the effects of the main proceeding from the effects of non main proceedings.

The basic distinction is drawn in paragraph (3) between foreign proceedings categorized as quot main quot proceedings, and those foreign proceedings that are not so characterized, depending upon the jurisdictional basis of the foreign proceeding.

The court shall decide which proceeding is the main proceeding. quot

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It was said that the administration of the main proceedings might be jeopardized if representatives in non main proceedings were empowered to request the opening of other non main proceedings.

Such relief was available to representatives appointed in both main and non main proceedings.

The Working Group decided that article 2 (Definitions) should contain definitions of main and non main proceedings.

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It was pointed out that the opening of a proceeding might interfere with the administration of the main proceeding and that, in the interest of enhancing the coordination of insolvency proceedings, only a representative of a foreign main proceeding should be granted that right.

Let us not forget that many countries are represented in the Organization.

quot 7. If there are surplus proceeds of a local non main proceeding, they shall be transferred to the main proceeding. quot

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A foreign proceeding is deemed to be the main proceeding if the proceeding has been opened in the State where the debtor has the centre of its main interests .

(c) quot foreign non main proceeding quot means a foreign proceeding, other than a foreign main proceeding, taking place in a State where the debtor has an establishment within the meaning of subparagraph (f) of this article

It is not advisable to include several criteria for qualifying a foreign proceeding as a quot main quot proceeding and provide that on the basis of any of those criteria a proceeding could be deemed a main proceeding.

(1) Upon recognition of a foreign proceeding that is a foreign main proceeding,

It was suggested that the foreign representative should be required to submit evidence that enabled the court to establish whether the proceeding for which recognition was sought was a main proceeding or a non main proceeding.

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Various interventions were made in favour of limiting the right to request the opening of foreign non main proceedings to the representative in the main proceedings.

quot (b) apos foreign main proceeding apos means a proceeding taking place in the State where the debtor has the centre of its main interests

(a) any relief granted under article 19 or 21 to a representative of a foreign non main proceeding after recognition of a foreign main proceeding must be consistent with the foreign main proceeding

38. The country team, under the leadership of the Humanitarian Coordinator, manages the original process of priority setting and the reassessment of priorities if there are shortfalls in funding.

(a) as a foreign main proceeding if it is taking place in the State where the debtor has the centre of its main interests or

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quot 1. There can only be one main proceeding.

It was also noted that, unlike articles 15 and 17, which, as currently drafted, encompassed both foreign main proceedings and foreign non main proceedings, article 16 was intended to provide certain mandatory effects only to a foreign main proceeding, upon recognition in the enacting State.

OPTION II the law of the foreign main proceeding if the foreign main proceeding is taking place in one of the States listed in Annex X

(b) quot foreign main proceeding quot means a foreign proceeding taking place in the State where the debtor has the centre of its main interests

quot (b) apos foreign main proceeding apos means a proceeding taking place in the State where the debtor has the centre of its main interests

(b) quot foreign main proceeding quot means a proceeding taking place in the State where the debtor has the centre of its main interests

(b) quot foreign main proceeding quot means a proceeding taking place in the State where the debtor has the centre of its main interests

Recognition of foreign main and non main proceedings

It was suggested that, with a view to ensuring adequate cooperation in cases involving main and non main proceedings, the powers referred to in article 6 should be limited to the representative appointed in the main proceedings.

(a) as a foreign main proceeding if the court of the foreign proceeding has jurisdiction based on the centre of the debtor apos s main interests

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It was pointed out that the opening of a proceeding might interfere with the administration of the main proceeding and that, in the interest of enhancing the cooperation and coordination in insolvency proceedings, only a representative in a foreign main proceeding should be granted that right.