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Title: $The Case for Cooperative Territoriality in International Bankruptcy
Abstract: This manuscript is part of an ongoing debate over the fundamental principles that govern the bankruptcies of multinational companies. Essentially three positions have emerged. Universalists assert that the bankruptcy of a multinational company should take place in the courts of the company's "home country" and the law of the home country should govern the distribution. Contractualist Robert K. Rasmussen asserts that the bankruptcy of each constituent entity of the company should take place in the courts of the country selected by that entity in its articles of incorporation and the law of the selected country should govern the distribution. This manuscript argues for a separate bankruptcy proceeding in each country where the multinational has assets. International cooperation should be achieved by agreement among the representatives of the bankruptcy estates, in the shadow of a default rule under which the law of the country where the asset is located would govern the distribution of that asset.