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Expert Analysis

New Uncertainty Surrounds Disputes Over Foreign Stays

Law360, New York (August 23, 2016, 4:46 PM EDT) -- A recent decision by the U.S. Bankruptcy Court for the Western District of Texas in In re Sanjel (USA) Inc. is a reminder that in a Chapter 15 case, the U.S. bankruptcy court will not always apply the law of the foreign jurisdiction to U.S. creditors and U.S.-based claims. Specifically, the case adds a wrinkle to the case law addressing the domestic application of foreign stays through Chapter 15, and in particular, whether it is appropriate for a bankruptcy court to modify or limit a foreign stay through changes to its recognition order (i.e., the order that gives a foreign stay effect in the United States)....

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