New York Bankruptcy Court: Foreign Representative in Chapter 15 Case Need Not Be Appointed by Foreign Court

In most cases seeking recognition of a foreign bankruptcy proceeding in the United States under chapter 15 of the Bankruptcy Code, the foreign debtor's "foreign representative" has been appointed by the foreign court or administrative body overseeing the debtor's bankruptcy case.

Filed under:
Global, USA, Insolvency & Restructuring, Litigation, Jones Day, Power of attorney
Authors:
Corinne Ball , Dan T. Moss , Michael C. Schneidereit , Isel M. Perez , Ryan Sims , David S. Torborg
Location:
Global, USA
Firm:
Jones Day
Third Circuit Updates Its Standard for Granting Comity to Foreign Bankruptcy Proceedings

"Comity" is a principle of jurisprudence whereby, under appropriate circumstances, one country recognizes within its borders the legislative, executive, or judicial acts of another nation. Many recent court rulings have examined the indispensable role of comity in the context of foreign bankruptcy or insolvency proceedings that have been "recognized" by U.S. courts during the two decades since the enactment of chapter 15 of the Bankruptcy Code. However, U.S.

Filed under:
Global, USA, Insolvency & Restructuring, Litigation, Jones Day, Barclays, Silicon Valley Bank, Third Circuit
Authors:
Dan T. Moss , David S. Torborg , Vinay Kurien
Location:
Global, USA
Firm:
Jones Day
Cayman Islands Branch of FDIC-Insured U.S. Bank Ineligible for Chapter 15 Relief

The Bankruptcy Code bars certain individuals or entities from filing for bankruptcy protection, generally because they do not reside or have a place of business or property in the United States, fail to satisfy certain debt thresholds, or are business entities, such as banks and insurance companies, subject to non-bankruptcy rules or regulations governing their rehabilitation or liquidation.

Filed under:
Global, USA, Banking, Insolvency & Restructuring, Litigation, Jones Day, Bankruptcy, Federal Deposit Insurance Corporation (USA), Silicon Valley Bank, Financial Institutions Reform, Recovery, and Enforcement Act 1989 (USA)
Authors:
Corinne Ball , Dan T. Moss , Nicholas J. Morin (Nick) , David S. Torborg
Location:
Global, USA
Firm:
Jones Day
Delaware Bankruptcy Court: "Center of Main Interests" for Purposes of Chapter 15 Recognition Must Be Determined on Debtor-by-Debtor Rather than Enterprise Group Basis

Determining a foreign debtor's "center of main interests" ("COMI") for purposes of recognizing a foreign bankruptcy proceeding in the United States under chapter 15 of the Bankruptcy Code can be problematic in cases involving multiple debtors that are members of an enterprise group doing business in several different countries. The U.S.

Filed under:
Global, USA, Delaware, Insolvency & Restructuring, Litigation, Jones Day, Bankruptcy, Employee Retirement Income Security Act 1974 (USA)
Authors:
Corinne Ball , David S. Torborg , Dan T. Moss
Location:
Global, USA
Firm:
Jones Day
Circuit Split: Eleventh Circuit and Second Circuit Disagree on Eligibility Requirements for Chapter 15 Debtors

Courts disagree over whether a foreign bankruptcy case can be recognized under chapter 15 of the Bankruptcy Code if the foreign debtor does not reside or have assets or a place of business in the United States. In 2013, the U.S. Court of Appeals for the Second Circuit staked out its position on this issue in Drawbridge Special Opportunities Fund LP v. Barnet (In re Barnet), 737 F.3d 238 (2d Cir. 2013), ruling that the provision of the Bankruptcy Code requiring U.S. residency, assets, or a place of business applies in chapter 15 cases as well as cases filed under other chapters.

Filed under:
Global, USA, Insolvency & Restructuring, Litigation, Jones Day, Bankruptcy, Cross-border insolvency, Supreme Court of the United States, Eleventh Circuit, U.S. Court of Appeals
Authors:
Corinne Ball , Dan T. Moss , Nicholas J. Morin (Nick) , David S. Torborg
Location:
Global, USA
Firm:
Jones Day