Committee Articles

In cross-border restructuring cases, frequently there is a U.S. or U.K. parent company and a German subsidiary. In a crisis, the managing director of the German entity often has a hard time explaining to the parent company what the duties are under German law if there is a crisis. From a U.S./U.K. perspective, the managing directors seem to be “wetting their pants” for no reason. This article wants to show that the dangers are all too real.

As your co-chairs, we are very excited to welcome new members to the committee and also look forward to connecting with long-time committee members. Thanks to those who have contributed articles to this newsletter (and to Simon Eickmann and Olya Antle for acting as editors). Special thanks to Evelyn Meltzer for her service as co-chair of the International Committee over the past two years, and a warm welcome to Ken Kraft as the incoming co-chair.

This article deals with the controversial practice of a Polish debtor being a capital company entering a multi-million M&A procedure by dividing assets and transferring part of the assets to a new shell company, in which the ownership structure was created on the model of the old company.

The English Supreme Court has dismissed an equitable personal claim in knowing receipt brought by Saad Investments Co. Ltd. and its joint liquidators (Saad) against a Saudi Arabian financial institution, and in doing so provided welcome elucidation on the cause of action — the law on which “has perplexed judges and academics alike for several decades.”[1]

Courts administering India’s insolvency and restructuring law, the Insolvency and Bankruptcy Code 2016 (IBC), have been grappling with the challenges posed by corporate group insolvencies. Many Indian businesses operate through family-controlled group structures, and their insolvency has been a matter of considerable public concern in India in recent years, particularly with real estate development groups.[1]

Global investor activity means a sudden increase in interest in the crypto-asset market.

The British Virgin Islands Court has reached a different conclusion to the courts of Bermuda, Cayman Islands and Hong Kong in holding that, in certain circumstances, ultimate beneficial bondholders have standing as contingent creditors to make applications for the appointment of liquidators to bond issuers, without the need to show a direct pre-existing contractual relationship with the issuer.

On October 24, 2023, the ABI International Committee hosted the 2023 Cross-Border Insolvency Program at Blank Rome LLP’s Conference Center in Midtown Manhattan. This annual day-long program featured four educational panels and a networking happy hour.

In re Modern Land Receives Honorable Mention

The International Committee presented its Second Annual ABI International Matter of the Year Award during ABI’s Cross-Border Insolvency Program, held on Oct. 24, 2023, in New York City.

On October 17, the International Committee hosted the initial webinar in its planned series of “Directors’ Duties Across Borders in the Insolvency Zone.” The first episode focused on Europe, with speakers from France (Alexandre Koenig of Stephenson Harwood), Germany (Bernd Meyer-Loewy of Kirkland & Ellis), Ireland (Gemma Freeman of Dentons) and the Netherlands (Krijn Hoogenboezem of Resor).