Advent of globalization has lead to cross border trading. Business operations of the many countries exist in many regions across the world. In such a scenario International insolvency has become an emerging issue. Countries try to adhere to the laws that are a balance between promoting trade and ensuring national financial safety. There is a need for standardized platform in which the companies operate in the scenario. UNCITRAL (United Nations Commission of International Trade) is one such endeavour in order to develop a homogenized pattern for the companies. International Insolvency laws are exclusively dealt in the modal law individual countries have developed their own code of laws in order to protect the interest of the country as well as the investors. There are several nuances and differential laws that have been adopted by the individual countries owing from this UNCITRAL code. American legislation has a number of codes and laws that are almost similar to the UNCITRAL code nevertheless there are some differences. These aspects in international insolvency will be probed in detail in this analysis. In this dissertation there will be analyses made about international insolvency cases in the United States of America. For this purpose a case study analysis of Elpida Memory will be probed. Elpida Memory is a Japanese company that had business operations in United States. It had filed for bankruptcy in On February 27, 2012 owing to its rapid expansion policy. Instead of filing for bankruptcy in Japan the company had decided to file for bankruptcy in United States. Reasons for this bankruptcy have been probed. The specific clause connected to insolvency in the United States bankruptcy code and verdict for the case has been analysed. Using this case comity factor will also is analysed. American Interpretation of the modal law proposed by UNCITRAL will be critically analysed in this scenario.
Initially there will be analysis of the overall code of UNCITRAL from which international insolvency in American Bankruptcy code and the laws pertaining to the particular case law will be analysed in this dissertation. Specific legislation used to render The verdict in this case will be analysed. Critical analysis of the Bankruptcy code and judgment rendered in this case will be examined.