Transnational insolvency: relevance, emergence, and procedures

Abstract

The present final paper aims to analyze the institution of transnational insolvency, a tool primarily used by companies and creditors to restore the financial vitality of a company operating in two or more countries. Specific objectives include analyzing the impacts of the UNCITRAL Law, which addresses insolvency on a global scale and has been incorporated into Brazilian legislation, as well as examining the importance of the principle of international cooperation in insolvency proceedings, observing potential jurisdictional conflicts that may arise during the process, and understanding the procedures and analyses required to ensure the effectiveness of foreign judgments in Brazil in these processes. The method used was a deductive approach. The results show that Brazilian bankruptcy and recovery law has added an entire chapter based on UNCITRAL's regulations on insolvency, with minor modifications to fit the Brazilian legal system. Regarding the principle of cooperation at the international level, it is seen as fundamental in the unfolding of insolvency actions, becoming indispensable when acts need to be performed in a foreign country unrelated to the main action. As for conflicts, it was noted that there are ways to avoid them as well as decision systems, and regarding the homologation of foreign insolvency processes in Brazil, it was possible to validate the procedure, the importance of the Superior Court of Justice (STJ), and that the judge will always verify the existence of requirements for homologation.