United States: Financial Restructuring

A U.S. bankruptcy court granted chapter 15 recognition to a Luxembourg judicial reorganization proceeding, rejecting creditor objections based on alleged unfairness.

UK restructuring plans have emerged as a powerful alternative to US Chapter 11 bankruptcy, offering unique advantages for distressed companies including preservation of stock listings, favorable voting thresholds, and the ability to implement non-consensual third-party releases. Recent cases involving US-based companies like Argo Blockchain, Fossil Group, and New Fortress Energy demonstrate how strategic forum shopping and flexible creditor treatment can achieve successful cross-border restructurings.

Multi-national companies continue to grow and expand their global networks, with subsidiaries, assets, creditors, and contracts spanning across multiple jurisdictions, and the need for a coherent legal process to coordinate insolvency proceedings across borders has grown correspondingly.