Zone of Insolvency

Zone of Insolvency

Tag Archives: Chapter 15

US Bankruptcy Court dismisses Ch. 15 case, bars foreign representative from appearing before it

By Michael Berthiaume (US) and Francisco Vazquez (US) on Posted in Bankruptcy Courts, Financial Restructuring & Insolvency, Global
Chapter 15 of the Bankruptcy Code was enacted to, among other things, foster cooperation between courts of the United States and courts of foreign countries “involved in cross-border insolvency cases.” 11 U.S.C. § 1501(a). In furtherance of this mandate, Section 1518 of the Bankruptcy Code requires a foreign representative to inform the US court of… Continue Reading

Opposing the National Bankruptcy Conference’s proposal to legislatively repeal Fairfield Sentry

By Howard Seife (US), Andrew Rosenblatt (US) and Francisco Vazquez (US) on Posted in US
On August 20, 2018, the National Bankruptcy Conference (the “NBC”), a group of bankruptcy judges, professors, and professionals that has consulted with Congress on the drafting of the U.S. Bankruptcy Code, sent a letter to Congress proposing a series of amendments to Chapter 15, which governs the process for obtaining recognition of a foreign insolvency… Continue Reading

English Court of Appeal affirms application of the “Gibbs Rule” in a cross-border restructuring

By Scott Atkins (AU) and Francisco Vazquez (US) on Posted in Australia, US
Under the English common law rule known as the “Gibbs rule,” a contractual obligation can be changed or discharged only in accordance with the law governing that obligation. Consequently, a debt governed by English law may not be discharged in a foreign insolvency or under a foreign restructuring plan unless the creditor submits to the… Continue Reading

Contract Provisions Do Not Override Distribution Provision of an Italian Restructuring Plan

By Francisco Vazquez (US) on Posted in US
U.S. companies that engage in business in multiple jurisdictions should be mindful of a recent decision by the United States Bankruptcy Court for the District of Delaware. In the Chapter 15 case of Energy Coal S.P.A., the bankruptcy court held that U.S. choice of law and forum selection provisions in a contract with a non-U.S.… Continue Reading

Delaware Bankruptcy Court Limits Access to Emails in Cross-Border Bankruptcy Case

By James Salwen on Posted in US
A recent decision by Judge Sontchi in the Bankruptcy Court for the District of Delaware casts some light on the methods that representatives of non-U.S. debtors can—and can’t—use to track down those who owe such debtors money. The Representatives of the Irish liquidation proceeding for Irish Bank Resolution Corporation Limited (“IBRC”) obtained recognition of the… Continue Reading

Bankruptcy Court Authorizes Hellas II Liquidators to Proceed with Claims against Apax, TPG and Others

By Francisco Vazquez (US) on Posted in US
Chadbourne & Parke LLP currently represents the English liquidators of Hellas Telecommunications (Luxembourg) II SCA, a company that formerly owned one of the largest mobile phone operators in Greece. On behalf of the English liquidators, in 2012 Chadbourne obtained an order from the US Bankruptcy Court from the Southern District of New York granting Chapter… Continue Reading

Provisional Liquidators’ Proper Planning Enabled Chapter 15 Recognition

By Francisco Vazquez (US) on Posted in US
At times, United States courts have been reluctant to grant recognition to foreign proceedings involving offshore “exempted” companies under Chapter 15 of the Bankruptcy Code. For example, the United States Bankruptcy Court for the Southern District of New York denied a request for recognition of the Cayman Islands liquidation of certain Bear Stearns funds. Following… Continue Reading

Foreign or Domestic, Licensees Have Rights Too

By Francisco Vazquez (US) on Posted in US
In a United States bankruptcy case, licensees of intellectual property are granted certain protections under Bankruptcy Code section 365(n) if a debtor rejects (terminates) the license. These protections, however, are not guaranteed when the debtor licensor is subject to a foreign insolvency proceeding. Nevertheless, as previously reported in the February 2012 issue of the International… Continue Reading

In re Millard: An Example Of Recognition Under Chapter 15

By Francisco Vazquez (US) on Posted in US
Chapter 15 of the Bankruptcy Code provides a relatively straightforward procedure to obtain recognition of a “foreign proceeding” in the United States. In particular, a foreign proceeding shall be recognized if (1) the foreign proceeding is a foreign main or foreign nonmain proceeding, (2) the petition for recognition was filed by a foreign representative and… Continue Reading