The European Union goes Comi-tose: hazards of harmonizing corporate insolvency laws in the global economy.

(88.) See Guzman, supra note 86, at 2179.

(89.) See Bufford, supra note 85, at 114.

(90.) See OMAR, supra note 22, at 24.

(91.) LoPucki, Cooperation in International Bankruptcy, supra note 86, at 742 (envisioning a form of territorialism more like universalism).

(92.) See id. at 743-44.

(93.) See id. at 744.

(94.) See Bufford, supra note 85, at 114-15; OMAR, supra note 22, at 24.

(95.) OMAR, supra note 22, at 24.

(96.) See Bufford, supra note 85, at 114 (citing Jay L. Westbrook, A Global Solution to International Default, 98 MICH. L. REV. 2277, 2309 (2000) [hereinafter Westbrook, A Global Solution]). Other disadvantages include the ease of conflict between jurisdictions; the inability of creditors to know in advance where the debtor's assets will be located when bankruptcy intervenes; uneven distribution of assets; and the opportunity for both creditors and debtors to use strategic methods to advance their own interests. Id. at 116 (discussing a case where a territorial regime in Japan refused to enjoin a major resort development in Australia, but the American court, under a universalist approach, was able to impose an automatic stay to prevent secured creditors in Australia from foreclosing on the Australian real property).

(97.) Id. at 110 (noting that the pure form of universalism occurs only in an ideal world and is only practical as a theory).

(98.) Id. (citing Westbrook, A Global Solution, supra note 96, at 2292-97).

(99.) See OMAR, supra note 22, at 26.

(100.) See Bufford, supra note 85, at 111.

(101.) See id. at 111-12 (discussing the modified form of universalism).

(102.) See id. at 112 (citing as an example Westbrook, A Global Solution, supra note 96, at 2297).

(103.) See OMAR, supra note 22, at 27.

(104.) See id. (discussing the apparent contradiction between the strategy of secondary or ancillary practices and their actual effects).

(105.) See Tony McAuley, Chapter and Verse: Insolvency Laws in Europe Are Being Overhauled, May 2005,http://www.cfoeurope.com/displaystory.cfm/3929315/ (chronicling the changes and reforms in different European countries' bankruptcy laws). Countries like England and Italy have even attempted to model their reorganization laws after America's Chapter 11. Id.

(106.) See Westbrook, Theory and Pragmatism, supra note 86, at 479-80 (discussing the outcome differences in Felixstowe Dock & Railway Co. v. U.S. Lines, Ltd., [1987] 2 Lloyd's Rep. 76).

(107.) See McAuley, supra note 105, at 4 (noting that early insolvency law was based on Roman penal laws, which resulted in harsh punishments for the debtors); see also 1 JAN DALHUISEN, DALHUISEN ON INT'L INSOLVENCY & BANKR. [section] 1.01 (Matthew Bender ed., 1986) (noting that while modern insolvency laws are derived from Roman laws, ancient Roman law was not static and developed over a thousand years).

(108.) DALHUISEN, supra note 107, [section] 1.02[1]. A person could become indebted only by obtaining a loan. Id. (citations omitted). Such loans, however, were uncommon in early Roman rural communities and could only be obtained by the nexum (literally "fetters") or an early form of contract known as sponsio. Id.

(109.) Id.

(110.) Id. [section] 1.02[1] (discussing the passage of Lex Poetilia Papiria de nexis).

(111.) Id. Liquidation was made possible by the growing use of contracts that legally bound the debtor to pay his debts. Id.

(112.) Id. In this procedure, if a debtor defaulted on a legally recognized and enforceable obligation, the debtor's estate would be attached. Id. Though the debtor remained in control of his estate, he was supervised by his creditors or by his trustee if there were many creditors. Id. If the debtor continued to refuse payment, his creditors would recover such payment by a sale of the estate to the highest bidder. Id.

(113.) Id.

(114.) Id. [section] 1.03. This procedure was designed for the bona fide debtor who became insolvent or unable to pay debts due to a force of nature. Id. Through this procedure, a debtor could petition the Praetor, or Governor, for relief by assigning all of the debtor's estate, with certain exemptions, to his creditors. Id.

(115.) Id. There are conflicting theories on whether such a procedure granted the debtor a discharge of his debts. Id. (citations omitted).

(116.) Id. [section] 1.04[2]. Debt reduction was typically granted to heirs of the debtor upon a majority decision by creditors to make the acceptance of inheritance more attractive. Id.

(117.) Id. [section] 1.05.

(118.) Id. [section] 2.01[1]-[2].

(119.) Id. (discussing tribes throughout Spain, northern Italy, Germany, and France where Roman law still appeared during the period of decline).

(120.) Id. [section] 2.01[2]. The liquidation procedure of distractio bonorum was a form of venditio bonorum designed for two or more creditors that led to a piecemeal sale of the debtor's estate. Id. [section] 1.02[4].

(121.) Id. [section] 2.01[2]. Certain individual remedies, depending on local laws, could include governmental attachment of the debtor's movable or immovable property in addition to the restriction of the debtor's intangible rights. Id. [section] 1.02[3] (discussing early individual remedies used under Roman law).

(122.) Id. [section] 2.01[2] (noting the different procedures of Roman law being used in different regions of Western Europe).

(123.) See id. [section] 2.01[1].

(124.) See id. [section] 2.01[2].

(125.) Id. [section] 2.02[1] (discussing the use of distractio bonorum and new innovations in bankruptcy proceedings).

(126.) Id. For example, if a debtor incurred debt with no intent to repay it, the debtor would be subjected to a severe punishment called banca rotta. Id. The term literally means "broken bench" and denotes a ceremonial breaking of the debtor's bench to deny the debtor his ability to continue his craft. Id.; see also OMAR, supra note 22, at 5 (discussing the etymology of bankruptcy).

(127.) See DALHUISEN, supra note 107, [section] 2.03[1] (noting that even though compositions were only available in limited situations, debtors benefited from them due to the diminished debt and possible discharge, and creditors benefited by the avoidance of complicated bankruptcy proceedings and accelerated payment).

(128.) Id. (noting that Book III of this Code contained the bankruptcy laws).

(129.) Id. [section] 3.05[1] (noting that small merchants were treated as nonmerchants, and nonmerchants were subject to special insolvency rules consisting of little more than individual remedies).

(130.) Id. [section] 3.05[2].

(131.) Id. Amministrazione controllata requires a plan the court feels will lead to full recovery of the enterprise. See Andrew Chetcuti Ganado, Heralding a New Corporate "Rescue Culture", THE ACCOUNTANT, Sept. 2002, at 9, available at http://www.miamalta.org/MagSept02Page09.htm. Creditors must agree by a majority vote. Id. (citing Italian Law, arts. 187-93).

(132.) See DALHUISEN, supra note 107, [section] 3.05[3] (discussing the ammistrazione straordinaria delle grandi imprese in crisi whereby the government and judiciary took the role of reorganizing the enterprises).

(133.) Id. (noting that the reorganization practice was a highly political matter).

(134.) The introduction of ammistrazione controllata and ammistrazione straordinaria marked a movement away from the use of traditional Roman insolvency remedies.

(135.) See DALHUISEN, supra note 107, [section] 3.05[3] (noting that the approach gives the cabinet committee in charge of economic policy the regulatory powers to interfere with corporation reorganizations).

(136.) See 2 COLLIER INT'L BUS. INSOLVENCY GUIDE [paragraph] 27.01[2][b] (Richard F. Broude et al. eds., 2006) (noting that Ireland inherited its common law from the English common law system after obtaining its independence in 1922 and continued to follow English common law in most cases thereafter).

(137.) See DALHUISEN, supra note 107, [section] 2.02[8].

(138.) Id.

(139.) See id. (discussing early forms of exemptions).

(140.) See id. (noting that the Act of Queen Anne established the debtor's first right to a discharge).

(141.) Id.

(142.) Id. (noting that before abolishing compositions in 1621, creditors were forced into composition agreements with debtors; after many years without compositions, English law took its cue from Scottish law and reintroduced compositions to benefit creditors).

(143.) Id. (noting that settlements derived from composition were not binding on the minority creditors and did not provide a discharge for the debtor).

(144.) Id. [section] 3.08[2] (noting that the Act of 1844 for Winding-Up the Affairs of Joint Stock Companies traditionally covers corporate insolvencies).

(145.) 2 COLLIER INT'L BUS. INSOLVENCY GUIDE [paragraph] 27.02[2][a] (Richard F. Broude et al. eds., 2006).

(146.) Id. [paragraph] 27.04.

(147.) Id.

(148.) Compare id. (noting that creditors typically prefer to wind up an insolvent debtor) with Marjorie L. Girth, Rethinking Fairness in Bankruptcy Proceedings, 73 AM. BANKR. L.J. 449, 450 (1999) (noting that involuntary petitions by a party other than the debtor are rare in American bankruptcy).