Citation: Segal v Sharma; In the matter of South West Radiology Pty Ltd (No 3) [2026] NSWSC 543

Court: Supreme Court of New South Wales

Judges: Brereton J

Date of judgment: 18 May 2026

If your company is grappling with higher costs, shrinking profit margins, or too much debt on the balance sheet, you are not alone. In the United States, bankruptcy filings reached a total of 574,314 in the year ending December 2025, marking an 11% increase over the previous year. The surge is especially significant among commercial Chapter 11 filings, which jumped by 67% in February 2026 compared to the previous year. This trend is widespread, affecting a range of industries including retail, healthcare, energy, real estate, and manufacturing.

In our March Alert, 3 Strikes Against Chapter 15: What the Texas Geden and Siu-Fung Decisions Mean for Recognition Strategy, we discussed two important decisions by Judge Alfredo Pérez of the U.S. Bankruptcy Court for the Southern District of Texas denying Chapter 15 recognition as to three debtors. We noted that some of the grounds for denial may have been avoidable with different pre-petition planning.

Written by - Thomas H. Curran

As cross-border insolvencies continue to evolve, a notable shift is emerging in how complex restructurings are being executed. While Chapter 11 has long been the dominant forum for large corporate reorganizations, an increasing number of companies - particularly those with international capital structures - are turning to foreign restructuring regimes as a primary venue, with Chapter 15 serving as the mechanism to extend those proceedings into the United States.

To those familiar with both U.S. and Australian insolvency regimes, Australia's creditors' scheme of arrangement (Scheme) may appear, at first glance, to resemble a Chapter 11 restructuring in disguise. This is because both regimes facilitate creditor compromise, allow incumbent management to remain in control, involve court supervision and rely on class-based voting structures to approve a restructuring outcome.

The United States Bankruptcy Court for the Southern District of New York (Court or New York Court) has denied Xinyuan Real Estate Company Ltd. (Xinyuan or Debtor)’s motion to dismiss an involuntary chapter 11 case filed against it by a group of noteholders.

The ruling, made on March 3, 2026, has implications for the interplay between United States bankruptcy proceedings and foreign schemes of arrangement, particularly when the foreign scheme is at an impasse.

Below, we discuss the background of the decision and its practical implications for foreign companies.

How does the “indicative rulings” process work when a settlement occurs while a bankruptcy dispute is pending on appeal before a U.S. circuit court of appeals?  In such circumstance: 

Key Takeaway

On January 20, 2026, the Supreme Court held in Coney Island Auto Parts Unlimited, Inc. v. Burton that motions to vacate void judgments under Rule 60(b)(4) must be filed within a “reasonable time.” The longstanding assumption in most circuits—that void judgments could be challenged without any time limit—is gone. Corporate defendants should act promptly upon learning of any judgment entered against them.

Rule 60: The Escape Hatch from Final Judgments

The U.S. District Court for the District of Delaware has issued a significant ruling in the cross‑border insolvency practice that reaffirms U.S. recognition of foreign restructuring plans containing third-party releases.

In re Caesars Entertainment is one of the major-and-successful bankruptcy cases in the history of these United States. 

The Caesars bankruptcy was filed on January 15, 2015, in the Northern Illinois Bankruptcy Court with $18 billion of debt.  It achieved a confirmed plan two years later (on January 17, 2017).  The bankruptcy case finally closed within the last six months (on December 3, 2025), and its last docket entry [No. 9968] is dated January 12, 2026.

Mediation Controversy—Background