Maximum Comity: Recognition of Foreign Proceedings Under the Bankruptcy Code
Chapter 15 of the U.S. Bankruptcy Code governs cross-border insolvency proceedings. It establishes a comity-based framework within which U.S. courts may recognize certain foreign insolvency proceedings and enforce orders issued in those proceedings. Like other U.S. law on the recognition of foreign proceedings, it includes a public policy exception. This post provides a brief overview…
Continue ReadingThird 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 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….
Continue Reading