A recent decision of the Court of Session has found that a Scottish administration can be declared as ancillary to an insolvency process in another jurisdiction. This means that the insolvency proceedings in one jurisdiction are considered as the main insolvency proceedings, while the ancillary proceedings in the other jurisdiction are restricted to dealing with the company's assets located there.

Background

The Bankruptcy and Diligence (Scotland) Bill was passed by the Scottish Parliament on 6 June 2024 and a date for it coming into force is awaited.