Recognition of foreign insolvency proceedings in the US under chapter 15
Produced in partnership with Liz Downing of Skadden Arps Slate Meagher & Flom LLP

The following Restructuring & Insolvency practice note produced in partnership with Liz Downing of Skadden Arps Slate Meagher & Flom LLP provides comprehensive and up to date legal information covering:

  • Recognition of foreign insolvency proceedings in the US under chapter 15
  • Chapter 15
  • Foreign Proceedings
  • Main and Non-main Proceedings
  • Commencement
  • Venue
  • Discretion
  • Consequence of Recognition
  • Cooperation
  • Dual Proceedings
  • More...

Recognition of foreign insolvency proceedings in the US under chapter 15

Chapter 15

In 2005, Congress added chapter 15 to the United States Bankruptcy Code in order to ‘encourage cooperation between the United States and foreign countries with respect to transnational insolvency cases’ H.R. Rep No 109-31(1) at 105 (2005). Chapter 15 implements the United Nations Commission on International Trade (UNCITRAL) Model Law on Cross-Border Insolvency. It provides for the recognition of foreign proceedings by United States Bankruptcy Courts.

Chapter 15 replaced section 304 of the US Bankruptcy Code, which had provided for proceedings that were ancillary to foreign proceedings.

Foreign Proceedings

A foreign proceeding is a collective judicial or administrative proceeding (including an interim proceeding) in a foreign country, under a law relating to insolvency or adjustment of debt, in which the assets and affairs of the debtor are subject to control or supervision by a foreign court, for the purpose of reorganisation or liquidation (11 U.S.C. § 101(23)). It is not necessary to have an open insolvency or rehabilitation proceeding pending before a court—parties need only demonstrate that they are before a court seeking relief regarding an ongoing insolvency or rehabilitation proceeding. Courts have generally permitted narrowly tailored discovery into matters relating to recognition proceedings.

A foreign representative is a person or body (including a person or body appointed on an interim basis) authorised in a foreign proceeding

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