The court granted a motion for recognition of a scheme of arrangement as a foreign main proceeding that discharged New York governed Notes and issued replacement notes, finding the Cayman Islands to be the Debtor’s COMI under 1502(4), where the holding company was registered in Cayman Islands and the scheme proceedings commenced in Cayman Islands while most of the real estate developments were in China. The court recognized and enforced the Cayman scheme, reasoning that (1) recognition as a nonmain proceeding was not warranted as lacking nontransitory evidence, whereas recognition as a main proceeding was consistent with the goals of chapter 15. The court’s decision was also supported by lack of objection; precedent related to the activities of court appointed liquidators as sufficient for COMI, good faith of the debtor, the expectations of the creditors, New York governed note debt and Cayman choice-of-law principles.
