Corporate Finance Lab (In English)

The Administration of Maritime Insolvencies Under the Paradigm of Cooperative Territoriality

Maritime insolvencies are uniquely international, involving owners, charterers, crew, and creditors across multiple jurisdictions. Existing cross‑border insolvency regimes such as the UNCITRAL Model Law and the European Insolvency Regulation adopt a universalist approach, which clashes with the territorial nature of maritime security interests, especially maritime liens. These liens enjoy paramount priority and in‑rem status, yet their recognition varies widely among common‑law and civil‑law systems, creating uncertainty in insolvency proceedings. The article proposes a "cooperative territoriality" model that grants maritime liens clear in‑rem protection, allowing swift ship arrest and improving overall creditor recovery.