Representatives Of Foreign Debtors Under Ch. 15

Law360, New York (February 11, 2008, 12:00 AM EST) -- Must a foreign debtor's insolvency representative obtain permission from a United States bankruptcy court before exercising the debtor's rights as shareholder to remove and replace directors and officers of a U.S. corporation?

The Bankruptcy Appellate Panel (BAP) of the Ninth Circuit recently held not, provided that the representative does not require judicial assistance to exercise these rights.[1]

Katsumi Iida, a Japanese citizen, was declared bankrupt under applicable Japanese law on Aug. 6, 2004. A trustee was appointed in the Japanese bankruptcy proceeding to liquidate the debtor's...
To view the full article, register now.