Vol 20 (2023) - Issue 5

Article preview

Golden Sphinx Provides Further Guidance on Discovery in Chapter 15 Bankruptcy Proceedings

Synopsis
The rules governing discovery in US chapter 15 cases have been somewhat ambiguous. There was an unresolved question of which rule(s) governed discovery in chapter 15 cases, and, relatedly, who was permitted to conduct discovery. The answer to this question has significant implications for all parties in chapter 15 cases.
Judge Neil Bason of the United States Bankruptcy Court for Central California provided answers to these questions in his recent decision in In re Golden Sphinx Limited, in which he considered a motion by Golden Sphinx’s principal creditor to conduct discovery, and concluded that (i) Bankruptcy Rule 2004 governs discovery in chapter 15 cases, and (ii) creditors may conduct limited discovery chapter 15 cases.