The automatic stay in cross-border insolvency is a legal mechanism that temporarily halts all actions against a debtor's assets, providing a breathing space for the debtor and ensuring equitable treatment of creditors across jurisdictions. It aims to prevent a chaotic scramble for assets and to facilitate an orderly resolution of the debtor's financial difficulties, often under the guidance of international frameworks like the UNCITRAL Model Law on Cross-Border Insolvency.
The UNCITRAL Model Law is a framework designed by the United Nations Commission on International Trade Law to harmonize and modernize national laws governing international commercial arbitration. It serves as a template for countries to adopt or adapt, ensuring consistency and predictability in arbitration proceedings globally.