This article originally appeared in The Bankruptcy Strategist.
To file bankruptcy in the U.S., a debtor must reside in, have a domicile or a place of business in, or have property in the United States. 11 U.S.C. §109(a). In cross border Chapter 15 cases, courts have considered if a foreign debtor must satisfy that jurisdictional test.
In Mitchell and others v Al Jaber; Al Jaber and others v JJW Ltd [2024] EWCA Civ 423 the Court of Appeal has confirmed that a director remained subject to a continuing fiduciary duty post liquidation when purporting to transfer assets owned by that company, on the basis he was an “intermeddler”. While the case concerned a BVI company, the court’s decision was based on English-law authorities and therefore has wider significance.
Facts
Introduction
On April 9th , the Second Panel of the Superior Court of Justice (STJ) unanimously ruled a case law regarding Special Appeals 2.090.060, 2.090.066 and 2.100.114, which were heard by Justice Humberto Martins, for judgment by the repetitive rite.
The controversial issue, registered as Theme 1,250 in the STJ database, analyzed “whether an award of attorney's fees is due in the event of a claim being upheld in judicial reorganization and bankruptcy proceedings”.
'Avoidance action' is an umbrella term for any proceedings that seek to revoke illegitimate acts that diminish the debtor’s assets. These actions aim to protect creditors and maximise the value recovery from the debtor. Colombian law stipulates a variety of avoidance actions before and during insolvency proceedings, notwithstanding criminal liability for the revoked acts.
Before insolvency proceedings
The practice of conferring "derivative standing" on official creditors' committees or individual creditors to assert claims on behalf of a bankruptcy estate in cases where the debtor or a bankruptcy trustee is unwilling or unable to do so is well-established. However, until recently, Delaware bankruptcy courts have uniformly limited the practice in cases where applicable non-bankruptcy law provides that creditors do not have standing to bring claims on behalf of certain entities.
The phrase “Texas Two-Step,” as used in bankruptcy, is a legal expletive. Regardless of what the details of a Texas Two-Step might be, the phrase has become synonymous with:
- abusive behavior;
- bad faith conduct;
- a means for swindling creditors;
- the antithesis of “doing what’s right”;
- a tool for avoiding liability;
- etc., etc.
Describing a legal tactic as a “Texas Two-Step” is like calling that tactic a “#$&*#%R&” or “#*$&.” It’s a legal expletive that means “really, really bad.”
The High Court considered whether a limitation period could prevent the presentation of a winding up petition based on a Lebanese judgment debt which was not registered as an English judgment.
Background
The creditor presented a winding up petition based on a judgment debt of $776,907.51 obtained in a Lebanese court in 2010. The debtor applied to restrain presentation of the petition on grounds that the judgment had not been registered nor recognised by the English Courts and the claim was time-barred.
Recognition
La Ley de Concursos Mercantiles (“LCM”) en México establece el procedimiento del concurso mercantil como una herramienta fundamental para la conservación de las empresas y maximización de su valor. Este proceso, dirigido por un Juez de Distrito especializado en materia concursal y especialistas del Instituto Federal de Especialistas de Concursos Mercantiles (“IFECOM”), está diseñado para proteger los derechos de los comerciantes frente a incumplimientos generalizados de sus obligaciones.
On May 31, 2024, the chief judge of the U.S. Bankruptcy Court for the Southern District of New York (SDNY) entered General Order M-634, adopting guidelines for combining the processes for Chapter 11 plan confirmation under Section 1129 of the Bankruptcy Code and disclosure statement approval under Section 1125 of the Bankruptcy Code.