From the pandemic to Europe’s largest military conflict since World War II, it seems the world is moving from one extraordinary period to another. The conflict in Europe has generated a maze of rapid legal, political and economic responses from authorities around the globe. Those actions are rippling through capital, markets and boardrooms as businesses grapple with how to respond. Join ABI and a panel of experts to discuss where we are headed and what businesses should consider.

In assisting companies doing business with their customers and the supply chain, we have noted that companies increasingly propose to their customers incentives to purchase goods, often in the form of rebates and discounts.

There may be circumstances where setting off the obligation to pay such incentives owed to a customer against the customer’s accounts receivable owed by the customer is necessary to avoid or reduce risk. The need for this “remedy” is exacerbated during periods of financial and market uncertainty.

In a Chapter 15 procedure in Delaware, a disgruntled “creditor” sued the Chapter 15 UK-based “foreign representatives” in their individual capacities. The case is McKillen v. Wallace (In re IBRC), No. 18-1797, 2019 U.S. Dist. LEXIS 166153 (D. Del. Sept. 27, 2019). Before administrators or liquidators outside the US become concerned about liability for serving as foreign representatives in Chapter 15 cases, read on.

In 2018, the Chapter 11 claims trading market generated $45 billion of claims sales. Three Chapter 11 cases generated the highest volume of claims trading: Lehman Brothers, Westinghouse Electric and Toys R Us. Because of their global tentacles including physical locations, global financing and insurance, supply chain and affiliates, creditors around the globe held claims against these and many other Chapter 11 debtors. While non- U.S.

A June 2018 Bankruptcy Court decision in the Southern District of New York (SDNY) held that foreign companies with no presence in the US were subject to default judgements.

In 2017, the U.S.’s largest trading partner was the European Union at $717 billion. Also in 2017, EU countries represented approximately 43% of foreign direct investment in the U.S.

In the Chapter 15 proceedings of Energy Coal S.p.A., the Delaware Bankruptcy Court required a U.S. creditor to recover its claim in Italy.

Chapter 15 of the US Bankruptcy Code, which is based on UNCITRAL’s Model Law on Cross-Border Insolvency, was enacted in 2005 to provide an “effective mechanism” for dealing with cross-border insolvency cases.

Some of Chapter 15’s express objectives are “greater legal certainty for trade and investment” and the “fair and efficient administration of cross-border insolvencies that protects the interests of all creditors and other interested entities, including the debtor.

UNCITRAL’s Working Group V(Insolvency Law), at its 53rd session in New York, has just completed work on the model law on recognition and enforcement of insolvency-related judgments (‘JudgmentsML’). The Judgments ML, together with a draft guide to enactment, will be submitted to the UNCITRAL Commission for finalisation and adoption within the year.If adopted, Member States will be invited to incorporate the Judgments ML into their national laws in order to harmonise cross-border enforcement and recognition of insolvency-related judgments.