8. Recognition of Foreign Proceedings

Recognition of foreign proceedings refers to the process by which one country's legal system acknowledges and validates insolvency proceedings (like bankruptcy) that have been initiated in another country. This recognition allows the foreign insolvency outcomes, such as asset distributions or debt resolutions, to be respected and enforced in the recognizing country. It aims to facilitate cooperation between different jurisdictions, ensuring that debtors and creditors can navigate cross-border issues effectively, minimize conflict between laws, and promote fair treatment of all stakeholders involved in international insolvency cases.