Chapter 15 of the Bankruptcy Code is designed to provide an effective mechanism to aid insolvency proceedings in foreign countries that involve a foreign debtor with assets, creditors and other parties in interest located in the foreign country as well as in United States. A foreign representative that is authorized to administer the foreign reorganization or liquidation or act as a representative of the foreign proceeding is the party who applies to the US bankruptcy court for recognition of the foreign proceeding.

Judges Kevin Carey and Mary Walrath of the United States Bankruptcy Court for the District of Delaware issued opinions in In re Tribune Co.¹ and In re JER/Jameson Mezz Borrower II, LLC², respectively, that shake up the landscape for restructuring real estate investments with multiple layers of debt.

Background

Clearing and Netting Legislation

Durch die Umsetzung der EU Restrukturierungs-Richtlinie soll das deutsche Sanierungs- und Insolvenzrecht modernisiert, effektiver gestaltet und um neue Instrumentarien bereichert werden.

Through implementing the EU Restructuring Directive, German restructuring and insolvency law will be modernized, more effective, and enriched by new instruments.

Judicial comments cast doubt on the ability to compromise US law-governed debt effectively based on Chapter 15 recognition alone.

Regierungsentwurf setzt EU Restrukturierungs-Richtlinie um und führt neues Sanierungsinstrumentarium ein.

Debtors and investors have an enhanced choice of restructuring venues as the EU Restructuring Directive is rolled out in Member States

Government draft of law implements EU Restructuring Framework, and introduces new restructuring instruments.