The purpose of the Model Law is to provide effective mechanism for dealing with cases of cross-border insolvency. Comment upon the statement.

The purpose of the Model Law is to provide effective mechanisms for dealing with cases of cross-border insolvency so as to promote the objectives of: Cooperation between the courts and other competent authorities of different countries dealing with cases of cross-border insolvency; Greater legal certainty for trade and investment; Fair and efficient administration of cross-border insolvencies that protects the interests of all creditors and other interested persons, including the debtor; Protection and maximization of the value of the debtor's assets; and Facilitation of the rescue of financially troubled businesses, thereby protecting investment and preserving employment.