In a case of first impression, Lavie v. Ran (In re Ran), 607 F.3d 1017 (5th Cir. 2010), the Fifth Circuit denied a petition for recognition of an Israeli bankruptcy proceeding under chapter 15 for an individual debtor because it did not qualify as a foreign main or foreign nonmain proceeding. The court found that neither the debtor’s “center of main interest” (“COMI”) nor his “establishment” were located in Israel at the time the petition for recognition was filed.

In a recent decision, CML V, LLC v. Bax, et al., C.A. No 5373-VCL (Del. Ch. Nov. 3, 2010), the Delaware Court of Chancery held that, unlike Delaware corporations, creditors of an insolvent Delaware limited liability company cannot bring derivative actions against the members or managers of the company unless they specifically contract for such rights.

Introduction With renewed confidence in the economy and stock prices on the rise, 2011 is likely to usher in a host of mergers and acquisitions. Forbes.com recently proclaimed 2011 as "the year of M&A", projecting a 36% increase in M&A activity from that of 2010.(1) For companies, the predicted frenzy of M&A activity promises not only growth, but also legal risk. Without appropriate pre-acquisition due diligence, a company looking to acquire a strategic advantage may find that it has also acquired liability under the Foreign Corrupt Practices Act or other anti-corruption laws.

CAYMAN ISLANDS Suspensions of redemptions by investment funds - timely clarification from the Privy Council The Privy Council's decision in Strategic Turnaround confirms our long-standing view that powers of suspensions and redemptions and the status of a redeeming, but unpaid, investor are matters of interpretation of the fund's Articles of Association and, where relevant, its offering documents.

At a hearing on January 13, 2011, the Chapter 11 Lehman Brothers entities in the United States announced their intention to file in the next 10 days an amended plan, which will include a proposed framework for the settlement of unresolved derivatives claims.

A recent decision of the Illinois Supreme Court examined the Illinois Sureties Act, which was originally enacted in 1819. That statute affords certain affirmative defenses to sureties in enforcement actions. The court held that that Sureties Act does not afford such defenses to guarantors. The applicability of the Sureties Act to sureties, and not guarantors, may make important the determination of whether a party is a guarantor or surety.

In the current economic and political environment in the US and globally, many leaders are facing difficult decisions regarding their debt holdings. Regulated financial institutions must classify loans as either performing or non- performing. Financial institutions must reserve for non-performing loans, which adversely impacts its capital requirements. In some cases, this dynamic causes lenders to modify loan terms rather than “call the loan”.

At a hearing on January 13, 2011, the Chapter 11 Lehman Brothers entities in the United States announced their intention to file in the next 10 days an amended plan, which will include a proposed framework for the settlement of unresolved derivatives claims.

In Fogerty v Petroquest Resources Inc (In re Condor Ins Ltd)(1) the Fifth Circuit Court of Appeals held that, pursuant to Section 1521 of the Bankruptcy Code, the foreign representatives of Condor Insurance Ltd (appointed by the Nevis court) could use Nevis law in a Chapter 15 case to avoid asset transfers by Condor to a US affiliate, even though the foreign representatives could not have avoided the transfers under US law.