In the Chapter 15 proceedings of Energy Coal S.p.A., the Delaware Bankruptcy Court required a U.S. creditor to recover its claim in Italy.
Because there is no uniform global insolvency law, and every country has its own insolvency law, The United Nations Commission on International Trade Law (UNCITRAL) developed the UNCITRAL Model Law on Cross-Border Insolvency (1997) to facilitate cooperation and uniform outcome in cross-border insolvencies. 43 countries have adopted the model law, and the U.S. version is Chapter 15, which is similar to the “foreign main” proceedings in Italy. Founded on principles of comity, the U.S. courts assist the foreign insolvency court in cross-border insolvencies. A key benefit of Chapter 15 to foreign debtors is the use of the “automatic stay” which enjoins creditor action against U.S. assets. Another important benefit is the foreign debtor’s ability to obtain discovery and assert claims against U.S. companies.