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.
Chapter 15 Resource Articles
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.