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In case of insolvency of such a company, many legal issues arise. Therefore, a well-equipped national insolvency laws dealing with such cases is needed.
Without national insolvency laws kept pace with the trend, countries are ill equipped to deal with cases of a cross-border nature. This would result in inadequate and inharmonious legal approaches, which hamper the rescue of financially troubled businesses, are not conducive to fair and efficient administration of cross-border insolvencies, impede the protection of assets of the insolvent debtor against dissipation, and hinder maximization of the value of those assets...
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