The suspension of the effects of the international arbitration agreement within the scope of the cross-border insolvency. A reality and a conflict increasingly more frequent

Abstract

This study analyses the points of friction that arise as a consequence of the interaction between an international arbitration agreement and an arrangement of creditors in the light of a judge­ment recently passed by the Commercial Court of Santander during a bankruptcy proceeding and which agrees to suspend the effects of the previously mentioned arbitration clause. An in-depth analysis was carried out to identify the conflict-of-law rule and select the law to be applied, which led to the analysis of the article 52.1 of the LC. The analysis critically evaluated the agreed judicial suspension, the possi­bilities of nullity of the arbitration clause and the assessment of the negative effects to the arrangement of creditors. Finally, a review of the extraterritorial effects of the judicial sentence is presented.