On the efficiency of the method of modified universalism for cross-border insolvency regulation in the European Union

The present study analyzes the problem of choosing the optimal method for regulating cross-border insolvency in the European Union. The author describes international bankruptcy regulation methods developed in international practice. The key issue, which the author also deals with, concerns the interaction between the parties of a cross-border insolvency case and the courts involved in the dispute and located in different countries. Among others, the method of modified universalism allows not only to initiate a unified procedure of cross-border insolvency applying the laws of the country where the debtor’s center of the main interests is located, but also to initiate secondary proceedings, which will be subordinate to the main proceedings in foreign states. In order to implement the ideas of modified universalism method in the European Union, the concept of COMI (center of main interests) is applied. The author concludes that the method of modified universalism is the most promising one for the European Union. The author also emphasizes that ideas developed in European practice can be applied to resolve cross-border insolvency disputes in Russia and the countries of the Eurasian Economic Union.