3. A NEW PARADIGM OF MODERN CROSSBORDER INSOLVENCY REGULATION: REGULATION THROUGH CO-OPERATION

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In the introduction to this chapter, reference was made to Balz, who noted that the

universality-territoriality dichotomy had nearly lost its meaning. In light of the

approaches to cross-border insolvency discussed above, the traditional principles

would indeed appear to be of little use either as normative or descriptive tools. For

instance, while LoPucki regards 'territoriality [as a] foundation for ( . . . ) mutually

beneficial cooperation', Unt states with equal conviction that 'territoriality ( . . . ) is the

inverse of co-operation'. 11 Admittedly, territorial elements remain part of all the

approaches discussed; none of t h em accept the universal effect of foreign proceedings.

However, it is equally true to say that they reject the very idea of territoriality, being

based on the assumption that cross-border insolvencies require collective and coordinated,

not fragmented, efforts. For similar reasons terms such as 'modified' or 'limited' universality are unsatisfactory.'"s These terms do little more than indicate

a position somewhere in between the two extremes of the principles of universality

and territoriality. They tail to capture the essence of modern cross-border insolvency

regulation, which is the accommodation of and reliance on co-operation.