Despite Tokyo Case, Elpida IP Deals Held To US Standard

Law360, Wilmington (November 19, 2012, 11:04 PM EST) -- A Delaware bankruptcy judge ruled Friday that under Chapter 15 insolvent Japanese chipmaker Elpida Memory Inc. must show its planned patent deals represent good business judgment, even though they already have been cleared by the Tokyo court overseeing the company's primary bankruptcy.

Asked by Elpida and a group of its American bondholders to resolve their differing interpretations of the Bankruptcy Code as it applies to the proposed deals, U.S. Bankruptcy Judge Christopher S. Sontchi found that Chapter 15 subjects the transfers to the same standard as...
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