Most lawyers familiar with chapter 15 cross-border insolvency proceedings might assume that "foreign" debtors in chapter 15 cases must be foreign entities — that is, entities not organized under the laws of U.S. states. For example, the idea of a Delaware corporation filing a chapter 15 bankruptcy petition, as opposed to filing a chapter 7 or 11 petition, might seem fanciful at first blush. However, what if that U.S. entity is part of a larger corporate family that conducts the bulk of its business in another country and commences insolvency proceedings for that business outside the U.S.?
Originally published by American Bankruptcy Institute Journal
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