Comity Is King: Chapter 15 Lessons From Rede And Vitro

Law360, New York (November 3, 2014, 10:25 AM EST) -- In November 2012, in Matter of Vitro SAB, the Fifth Circuit affirmed a bankruptcy court ruling denying enforcement of Chapter 15 debtor Vitro's Mexican plan of reorganization (referred to as the Concurso plan). In August 2014, in In re Rede Energia SA, the Bankruptcy Court in the Southern District of New York granted enforcement of Chapter 15 debtor Rede's Brazilian reorganization plan. In both cases, the enforcement of the foreign plans had been opposed by creditors dissatisfied with their treatment. The objecting creditors, in both cases, argued that the foreign plan should not be granted comity in the United States because they received worse treatment in the foreign proceeding than they would have in Chapter 11....

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