2.5.3. Effect* of Recognition and Choice of Law
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As under the current United States law, no conflict rules are provided. Choice of
law is subsumed within the court's order for relief. Nowhere is the insolvency law
of the foreign proceeding accorded extraterritorial effect in the strict sense. In general.
the Model Law refrains from prescribing any specific rules for conflicts of law. A good
illustration is the provision regarding actions for avoidance of acts detrimental to
creditors. Article 23 gives the foreign representative standing lor avoidance actions.
However, the narrow wording of the Model Law indicates that no substantive right
to avoid transactions is created, nor is the question of applicable law to such actions
even addressed.
Ultimately, except for the prescribed automatic stay upon the recognition of
foreign main proceedings, the Model Law is of a procedural, open-ended nature only.
It accords wide discretionary powers for the courts to order 'appropriate relief but provides no guidance in shaping particular relief except tor the objectives stated in
the preamble.