Venue Section Considerations
Produced in partnership with Julie Lanz of Skadden Arps Slate Meagher & Flom LLP
Venue Section Considerations

The following Restructuring & Insolvency guidance note Produced in partnership with Julie Lanz of Skadden Arps Slate Meagher & Flom LLP provides comprehensive and up to date legal information covering:

  • Venue Section Considerations
  • Where a case may be commenced
  • The need to conduct a venue analysis
  • Considerations for selecting a forum
  • Legal factors
  • Practical factors
  • Critiques of permissive venue selection

Where a case may be commenced

A chapter 11 case may be commenced in the district court for the district in which the domicile, residence, principal place of business in the US, or principal assets in the US, of the person or entity that is the subject of the case has been located for the 180 days immediately preceding commencement or has been located in such district for a longer portion of such 180 day period than in any other district (28 U.S.C. § 1408). Further:

  1. for business entities, domicile means the place of organisation or incorporation (see: In re Dunmore Homes BR 663 670 (Bankr SDNY 2008) (not reported by LexisNexis®))

  2. courts either find that the place of organisation or incorporation of a business entity is also its residence or that the term residence as used in the bankruptcy venue statute is a term that applies only to individuals and not business entities (see: In re Houghton Mifflin Harcourt Pub. Co. 474 BR 122 135 (Bankr SDNY 2012) (not reported by LexisNexis®))

  3. for business entities, the principal place of business refers to the place where the entity’s officers direct, control and co-ordinate the entity’s activities, ie its nerve centre (see: Hertz Corp. v Friend 559 US 77 80 (2010) (not reported by LexisNexis®))

  4. it is not unusual for the place of organisation to be different from the location