Third Circuit Clarifies Comity Abstention Test
The Third Circuit recently clarified the appropriate test for deferring to foreign bankruptcy proceedings. The court’s opinion in Vertiv, Inc. v. Wayne Burt PTE, Ltd. is clear, correct, and helpful in disambiguating the different contexts in which other federal courts have referred to “international comity abstention” and adjudicatory comity. The Facts In January 2020, Vertiv,…
Continue ReadingA Primer on Transnational Parallel Proceedings
It is not uncommon for parties involved in cross-border disputes to file competing or overlapping lawsuits in different forums. When should a U.S. court stay its hand in favor of a lawsuit filed in another country? Conversely, when should a U.S. court take proactive measures to defend its jurisdiction from interference by proceedings in a…
Continue ReadingRecognition of Foreign Bankruptcy Proceedings Under Chapter 15
Transnational insolvency proceedings primarily involve cases where debtors have assets or creditors in multiple jurisdictions. To avoid conflicts between different bankruptcy regimes, many countries allow recognition of foreign bankruptcies in their territories and provide aid to foreign bankruptcy trustees. Recognition of foreign insolvency proceedings in the United States is governed by Chapter 15 of the U.S….
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