Vol 20 (2023) - Issue 4

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‘A Matter of Semantics’: Conversion of Foreign Restructuring Proceeding Into Liquidation Does Not Require New Chapter 15 Case

Synopsis
In Comair, Judge James Garrity Jr. considered whether the conversion of a foreign reorganisation proceeding into a foreign liquidation proceeding requires a corresponding chapter 15 case to be closed and refiled – in the case at hand, to adjudicate pending discovery issues. In an unpublished memorandum order, Judge Garrity ruled in the negative and held that the 'termination' of a reorganisation proceeding in favour of liquidation and the 'conversion' of a reorganisation into a liquidation was a mere 'semantic difference' that did not require the pre-liquidation chapter 15 proceeding to be closed and filed anew.