• Second Circuit Holds that Chapter 15 Debtors Must Satisfy Eligibility Requirements of Section 109(a) of the Bankruptcy Code in Order to be Eligible for Relief
  • December 18, 2013 | Authors: Joel Moss; Brian Trust
  • Law Firm: Mayer Brown LLP - New York Office
  • In a case of importance to foreign representatives of foreign debtors seeking the assistance of US courts pursuant to chapter 15 of the Bankruptcy Code, the US Court of Appeals for the Second Circuit has held that the debtor eligibility requirements of section 109(a) of the US Bankruptcy Code apply in cases under chapter 15 as they would in cases under other chapters of the Bankruptcy Code. The decision in Drawbridge Special Opportunities Fund LP v. Barnet (In re Barnet, Case No. 13-612 (2d Cir. Dec. 11, 2013) (“Barnet”), means that in addition to the various requirements for relief contained in chapter 15 itself, a foreign debtor must satisfy the threshold eligibility requirements under section 109(a) of the Bankruptcy Code to be a debtor: namely, the foreign debtor must reside or have a domicile, a place of business or property in the United States.