2 . 2 . T E R R I T O R I A L I TY

Aside from the characterisation of insolvency as belonging to the realm oistatuta realici

in the historic context of the statutist approach to conflicts of l a w , " : the predominant

justifications for territoriality have been derived from insolvency law's public policy

nature. Many authors have directly linked insolvency law with public law and ordre

public and therefore with sovereignty and its territorial limits.1 Thus it has been

argued that as an expression of Staatsgewalt the effects of insolvency proceedings are

subject to the same territorial limits.'"' Others focus on insolvency law as being part

of the law of enforcement, involving a general attachment and execution, or as being

part of the law of procedure generally, leading to the same territorial limits."" Arguments

in favour of territoriality have also been derived from the risks and costs ol

accepting universality in respect of local creditors, debtors and society at large.""'