In In re Servicos de Petroleo Constellation, the United States Bankruptcy Court for the Southern District of New York approved the withdrawal of a chapter 15 petition and dismissal of the chapter 15 case where the original scheme of arrangement under Brazilian law had not proceeded, and the debtor pursued alternative restructuring proceedings approved by the superior court in the British Virgin Islands. Further, the bankruptcy court granted a renewed request for recognition under chapter 15 under the Bankruptcy Code for a certain Brazilian proceeding as to a certain petitioner because the petitioner (after a Brazilian appellate decision) now satisfied: (i) the eligibility requirements under 11 U.S.C. § 109(a) and venue was proper in the District of New York because of bank accounts in the district; (ii) the recognition requirements under 11 U.S.C. §§ 1517(a)(2) and 1517(a)(3) as the petitioner was a person or body and the verified petition met the requirements of 11 U.S.C. §§ 1515; and (iii) the requirement that the foreign proceeding under Brazilian law was a main or nonmain proceeding with respect to the petitioner for 11 U.S.C. §§ 1517(a)(1). In its analysis, the bankruptcy court concluded the petitioner’s center of main interests was Luxembourg; and therefore, the Brazilian proceeding was a foreign nonmain proceeding with respect to the petitioner. Also, the bankruptcy court granted full force and effect and comity to a certain Brazilian plan of reorganization with respect to the petitioner because: (i) the same relief had been previously granted to other debtors by the bankruptcy court; (ii) such relief was necessary to avoid creditors actions against the petitioner; and (iii) the Brazilian court had confirmed the Brazilian plan of reorganization with respect to a broader restructuring of the debtor group.
