Abstract

The accelerating pace of globalisation has intensified cross-border commercial transactions, inevitably increasing the incidence of cross-border insolvency. As such, while domestic insolvency laws remain fragmented, businesses and creditors increasingly operate across multiple jurisdictions, raising complex legal questions about the recognition and coordination of insolvency proceedings.1 This article critically examines the challenges and prospects of harmonising domestic insolvency laws with international best practices. It begins by outlining the conceptual foundations of cross-border insolvency, focusing on the tension between universalist and territorialist approaches. The analysis then turns to the role of international instruments, particularly the UNCITRAL Model Law on Cross-Border Insolvency and regional frameworks such as the European Union Insolvency Regulation, evaluating their effectiveness in promoting legal certainty and cooperation among courts. Drawing on landmark cases and comparative insights, the article highlights persistent obstacles, including jurisdictional conflicts, public policy exceptions, and political resistance to the harmonisation of insolvency laws. In response, the article proposes pragmatic recommendations for achieving greater harmonisation, including broader adoption of international standards, regional cooperation initiatives, and the integration of emerging technologies to streamline cross-border insolvency processes. Ultimately, the article argues that fostering a coherent and predictable cross-border insolvency framework is essential not only for creditor protection but also for sustaining confidence in the global commercial ecosystem.