Development of Comity and Assistance to Foreign Insolvency Courts
1. In December 2005 the Joint Receivers and Managers of the Consumers Trust (“TCT”) filed for Chapter
11 bankruptcy protection in the United States Bankruptcy Court for the Southern district of New York.
Although TCT is an English trust its assets and its business were in the USA. In the USA a business trust such as TCT is regarded as a corporate entity for the purposes of insolvency proceedings. No such process is
available in the case of a trust in England where the trustees of TCT resided. Since the centre of main
interests of TCT was in the USA such a filing was permissible and appropriate and supplemented the
process of court appointed receivership which had started in November 2005.
Location