• Recognizing Foreign Liquidations Under Chapter 15: The Second Circuit Weighs In
  • April 29, 2013
  • Law Firm: Lewis Baach PLLC - Washington Office
  • The United States Court of Appeals for the Second Circuit, the court with jurisdiction over New York, issued an important decision last week concerning the recognition of foreign insolvency proceedings by the United States courts. Chapter 15 of the United States Bankruptcy Code provides the mechanism for representatives of insolvent foreign debtors to seek U.S. recognition, comity, and judicial assistance. Recognition of a foreign representative under Chapter 15 is not automatic; the bankruptcy court must make certain findings, including that the debtor has sufficient connections with the situs of the foreign insolvency proceedings to warrant recognition of that jurisdiction’s appointee.