Jeffrey Liesemer Discusses Chapter 15 and Cross-Border Bankruptcies on Strafford Webinar

Description

Cross-border insolvencies are increasingly commonplace in today’s global economy. Chapter 15 respects the differences in insolvency laws of each jurisdiction while giving courts the ability to protect local interests. But what if the insolvency laws of a foreign country are inconsistent with U.S. bankruptcy laws? What if there are competing actions in more than one jurisdiction? Bankruptcy practitioners must understand the issues particular to cross-border proceedings and how a U.S. bankruptcy court might handle them.

A Chapter 15 case is ancillary to an insolvency proceeding brought in another country, typically the debtor’s home jurisdiction. A designated “foreign representative” commences the case by filing a petition with a U.S. bankruptcy court seeking recognition of the foreign proceeding. A threshold issue is the extent of the foreign representative’s authority with respect domestic creditors’ claims.

The bankruptcy court must also determine whether the foreign proceeding is a “foreign main proceeding” (a proceeding pending in a country where the debtor’s “center of main interests” (COMI) are located) or a “foreign non-main proceeding” (a proceeding pending in a country where the debtor has established business but not its COMI). “COMI migration”—the shifting of a debtor’s COMI to a country with more favorable insolvency laws—complicates the task. Such shifting may be legitimate or determined to be made in bad faith.

Listen as our authoritative panel analyzes these and other issues associated with cross-border insolvencies. In addition to the complexities of COMI, foreign representatives, and multiple jurisdictional actions, the panel will cover discovery, asset recovery and other concerns.

Benefits

The panel will review these and other key issues:

· What are the underlying principles of Chapter 15, and how do they contrast with Chapter 11?

· When is a foreign representative similar to a debtor in possession in a cross-border case?

· What factors are considered by a court in approving COMI migration?

· What are some of the additional challenges to asset recovery in a cross-border case?

· How does Chapter 15 discovery differ from Chapter 11 discovery?