Chase Cambria
  • Log in
  • Not a member yet?
go
  • Contact
  • Webmail
  • Archive
 
  • Home
  • Overview
  • Journal Issues
  • Special Issues
  • Subscriptions
  • Editorial Board
  • Author Guidelines

International Corporate Rescue

Journal Issues

  • Vol 1 (2004)
  • Vol 2 (2005)
  • Vol 3 (2006)
  • Vol 4 (2007)
  • Vol 5 (2008)
  • Vol 6 (2009)
  • Vol 7 (2010)
  • Vol 8 (2011)
  • Vol 9 (2012)
  • Vol 10 (2013)
  • Vol 11 (2014)
  • Vol 12 (2015)
  • Vol 13 (2016)
  • Vol 14 (2017)
  • Vol 15 (2018)
  • Vol 16 (2019)
  • Vol 17 (2020)
  • Vol 18 (2021)
  • Vol 19 (2022)
  •         Issue 1
  •         Issue 2
  •         Issue 3

Vol 19 (2022) - Issue 2

Article preview

Bad Faith Is Not a Bar to Chapter 15 Recognition of Foreign Proceeding, Says Southern District of New York Bankruptcy Court

Maja Zerjal Fink, Partner, Arnold & Porter Kaye Scholer LLP, New York, USA, and Ginger Clements, Senior Associate, Arnold & Porter Kaye Scholer LLP, Chicago, USA

Synopsis
In Culligan Ltd., the U.S. Bankruptcy Court for the Southern District of New York (the 'Bankruptcy Court') held that bad faith is not a bar to recognition of a foreign proceeding under chapter 15 of the U.S.
Bankruptcy Code (the 'Bankruptcy Code') where the debtor filed chapter 15 solely as a litigation tactic to stay pending litigation in New York state court. In reaching its decision, the Bankruptcy Court explained that, unlike in chapter 11 cases, there is no good faith filing requirement under chapter 15 of the Bankruptcy Code. Rather, recognition of a foreign proceeding under chapter 15 is subject to the requirements set forth in section 1517(a) of the Bankruptcy Code as limited by the public policy exception contained in section 1506 of the Bankruptcy Code. The public policy exception is narrow and is to be invoked only in extraordinary circumstances. The chapter 15 filing by the debtor in the Culligan case, though a litigation tactic, was not such an extraordinary circumstance, according to the Bankruptcy Court. Accordingly, as all the requirements for recognition of the foreign proceeding had been met, the Bankruptcy Court granted recognition of the proceeding.

Buy this article
Get instant access to this article for only EUR 45 / USD 55 / GBP 40
Buy this issue
Get instant access to this issue for only EUR 165 / USD 220 / GBP 145
Buy annual subscription
Subscribe to the journal and recieve a hardcopy for
EUR 730 / USD 890 / GBP 520
If you are already a subscriber
log In here

International Corporate Rescue

"I see a lot of corporate restructuring publications but International Corporate Rescue has struck the right balance of case studies and new technical issues, all wrapped up in a very reader-friendly style."

Alan Bloom, Head of Restructuring, EY, London

Join our mailing list

Join our mailing list to receive regular updates on latest issues and content.

Copyright 2006 Chase Cambria Company (Publishing) Limited. All rights reserved.