3rd Circ. Backs Ch. 15 Protections For Bankrupt Aussie Co.

Law360, Wilmington (August 28, 2013, 6:47 PM ET) -- The Third Circuit on Tuesday affirmed bankruptcy protections granted to Australia-based ABC Developmental Learning Centres Ltd., thwarting a bid by RCS Capital Development LLC to dislodge the automatic stay shielding ABC's assets from a $47 million breach of contract judgment.

In a 28-page opinion, the three-judge panel ruled the insolvent Australian child care provider was entitled to Chapter 15 recognition and a stay protecting its U.S. assets from creditor actions, regardless of the fact that that those assets are fully encumbered.

Austrailia's Corporations Act utilizes receivers...
To view the full article, register now.