Collectivity and Equality (Pari Passu) in the Treatment of Local Public Entities in Distress

This article presents the findings of a global study on the treatment of local public entities in distress conducted in 20 jurisdictions across the world. It sets out to detail and analyses how different national insolvency law systems treat local public entities in distress. The main purpose of this study is to provide recommendations for a harmonised and principled treatment of these entities. The key priority of the recommendations proposed in the study is to ensure the continuity of essential public services without necessarily deviating from the established insolvency principles of collectivity and equality of treatment among creditors.