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.