4 . 2 . LAW O F U J S T R I B U ' F I ON

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The law of distribution aims to ensure an equitable distribution of the proceeds of

deployment (or conversely the loss o f insolvency). I t may mirror the relative position

creditors have under n o n - i n s o l v e n c y law or may adjust that ranking for various reasons.

1 "' In the latter case, this may amount to an obstacle to trade in the sense ot the

freedoms. If an obstacle is the result, Community law requires the Member State of

the forum concitrsusto show a sufficiently close connect ion with the objective pursued

and the interest underlying that adjustment.

In respect of rules of distribution aiming to protect certain creditors, the requirement

of a sufficiently close connection may seem to present a possible problem. By imposing

the distributional scheme of the lex fori coneursiis universally, not only are creditors

within the regulatory jurisdiction of the Member State where the proceedings were

opened protected, but also those creditors the protection of which appears to be