The collapse of Passaredo Linhas Aéreas (currently known as "VOEPASS") in the beginning of 2025 has exposed a weakness, at the trial court level, in Brazil's legal framework for international aviation finance, revealing violations of both the Cape Town Convention and its Aircraft Protocol (together, the “CTC”) and the domestic bankruptcy law. VOEPASS is a regional airline that operated with ten leased ATRs aircraft in early 2025.
Two recent cases out of the Third Circuit and the Southern District of New York highlight some of the developing formulas US courts are using when engaging with foreign debtors. In a case out of the Third Circuit, Vertivv. Wayne Burt, the court expanded on factors to be considered when deciding whether international comity requires the dismissal of US civil claims that impact foreign insolvency proceedings.
Key Takeaways
Key Takeaways
When a majority of a company’s board approves a tender offer in good faith, can it still be avoided as an actually fraudulent transfer? Yes, says the Delaware Bankruptcy Court, holding that the fraudulent intent of a corporation’s CEO who was a board member and exercised control over the board can be imputed to the corporation, even if he was the sole actor with fraudulent intent.
Background
Key Takeaways
Recently, in In re Moon Group Inc., a bankruptcy court said no, but the district court, which has agreed to review the decision on an interlocutory appeal, seems far less sure.
The U.S. Supreme Court ruled on Thursday that because Indian tribes are indisputably governments, the Bankruptcy Code unmistakably abrogates their sovereign immunity to bankruptcy court proceedings.