PRACTICE NOTES
Insolvency law and admiralty or shipping/maritime law
Insolvency and admiralty or shipping/maritime law routinely involve cross-border dealings and assets spread across several jurisdictions. Over time, each area has developed mechanisms to recognise foreign legal regimes and to move towards harmonisation, whether through evolving practice or by unifying rules via international conventions. Nevertheless, these disciplines have largely progressed independently, paying limited attention to one another. As a result, although both seek international coherence, real points of friction have emerged between insolvency and maritime practice, which parties confronting a maritime insolvency must carefully consider...
The principal obstacle to conventional insolvency pathways is the range of rights held by stakeholders in the shipping sphere over the key tangible assets of shipowners—namely, vessels—arising under:
internationally recognised traditional maritime law (maritime liens)
international conventions, for example the International Convention Relating to the Arrest of Sea-Going Ships, Brussels 1952 (the
Restructuring & Insolvency