Vol 19 (2022) - Issue 1

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Is Chapter 15 a Prerequisite to Obtaining Comity from a US Court with Respect to Foreign Insolvency Proceedings?

Synopsis
US courts have a long tradition of granting comity and enforcing orders of foreign courts. With the enactment of US Bankruptcy Code section 304 in 1978, and Chapter 15 in 2005, representatives in foreign bankruptcy cases generally sought relief in US courts through section 304 and later Chapter 15. It remains an open question, however, whether commencing a chapter 15 case is a prerequisite to obtaining comity with respect to a foreign insolvency proceeding. Based on two recent decisions, the answer may be that it depends on the US court deciding the issue.