Gerova Financial Group Ltd., a Bermuda-based financial-services company, sought U.S. bankruptcy court protection listing debt of as much as $500 million, Bloomberg reported. The Hamilton-based firm, formerly known as Asia Special Situations Acquisition Corp., filed a Chapter 15 petition in Manhattan today to protect its U.S. assets from creditors. Assets were valued at more than $50 million, Gerova said. Gerova began liquidation proceedings July 20 in Bermuda. Chapter 15 shields foreign companies from U.S. lawsuits and creditor claims while a company continues the process abroad.
Chapter 15 Headlines
Senate Judiciary Committee Holds Hearing on William Baer’s Nomination to Head the U.S. Department of Justice’s Antitrust Division
The Senate Judiciary Committee yesterday held an hour-long hearing on President Barack Obama’s nomination of William J. Baer to be Assistant Attorney General in charge of the Department of Justice’s Antitrust Division (“DOJ”).
Sanko Steamship Co., the Japanese operator of 185 ships, asked a court to protect its U.S. assets after the company filed for bankruptcy protection in Japan, Bloomberg reported. Sanko listed assets and debt of more than $500 million in a Chapter 15 petition filed in U.S. Bankruptcy Court in Manhattan. Companies use Chapter 15 of the U.S. Bankruptcy Code to protect their U.S. assets while they reorganize operations under the jurisdiction of a foreign bankruptcy court. Sanko said yesterday that the Tokyo District Court granted the closely held company permission to keep operating.
Mexican glassmaker Vitro SAB is heading to a U.S. appeals court to save its restructuring at home from an assault by U.S. creditors in a case that could transport the U.S. bankruptcy code beyond that nation's borders, Reuters reported. The case pits one of Monterrey, Mexico's powerful and politically connected "Group of 10" businesses against U.S. hedge funds, which Latin American critics have reviled as "vultures" for their battle against Argentina's sovereign debt restructuring. Hanging in the balance is the use of Chapter 15. Foreign companies have used this 7-year-old piece of the U.S.
Struggling to figure out how to sell DVDs and CDs in a download-driven world, Toronto-based movie and music seller Cinram International Inc. has filed for bankruptcy protection while its executives move to sell its operations, Dow Jones DBR Small Cap reported. The company and several affiliates that it controls filed for Chapter 15 protection in U.S. Bankruptcy Court in Wilmington, Del., to block the consequences that it would face when its agreement with its biggest lenders expires on June 30.
A U.S. federal judge refused Wednesday to enforce Mexican glass maker Vitro SAB's controversial debt restructuring in a closely watched bankruptcy case that threatened to sever the cross-border business cooperation between the two nation's legal systems, The Wall Street Journal reported. Judge Harlin D. "Cooter" Hale of the U.S. Bankruptcy Court in Dallas sided with bondholders in rejecting Vitro's bid, in what has been called one of the most important cases decided under Chapter 15, the section of the U.S. Bankruptcy Code governing international insolvencies.
Vitro SAB’s bid to enforce its Mexican bankruptcy plan in the U.S. is set to be decided by a judge next week after the glassmaker clashed with bondholders in court over the plan, Bloomberg reported. U.S. Bankruptcy Judge Harlin DeWayne Hale in Dallas said in court today that he plans to rule on Vitro’s enforcement motion next week, probably by June 13. Vitro, which has won approval for the bankruptcy plan in Mexico, is seeking an order from Hale enforcing the restructuring and stopping litigation by bondholders who have been fighting the plan in the U.S.
Investors and financial analysts have their eyes on a bankruptcy case, pending in a Dallas courtroom, that they say could systematically shift how American firms do business with Mexican companies, KETK reported. The case also comes at a time when business interests from both sides of the Rio Grande are pushing to include Mexico in the current Trans-Pacific Partnership negotiations. Mexican glass company Vitro S.A.B filed for voluntary bankruptcy in December 2010, after defaulting on about $1.2 billion in bond debt held by foreign banks, including American interests.
Humpuss Sea Transport Pte Ltd., a Singapore-based unit of an Indonesian shipping company, filed for Chapter 15 bankruptcy protection in the U.S., Bloomberg reported. The unit of Jakarta-based PT Humpuss Intermoda Transportasi is already under the control of liquidators in Singapore, where it was incorporated in 1996, according to Monday’s filing in U.S. Bankruptcy Court in Manhattan. Debt and assets were listed at more than $100 million.
A judge affirmed packaged ice company Arctic Glacier International Inc.'s right to receive the benefits of Chapter 15 protection in the U.S. as its restructuring plays out in Canada, Dow Jones DBR Small Cap reported. Judge Kevin Gross of the U.S. Bankruptcy Court in Wilmington, Del., Friday signed off on the company's petition for protection under Chapter 15, which allows companies to seek the U.S. court's recognition of a foreign bankruptcy case.