Growing Pains For Chapter 15

Law360, New York (September 18, 2007, 12:00 AM EDT) -- The high-profile implosion of two Bear Stearns Cos. Inc. hedge funds is shaping up to be a definitive test for the baby of U.S. Bankruptcy law: Chapter 15, a law designed for cross-border bankruptcy cases.

Calling the offshore operations of the two Cayman Island-based hedge funds little more than a “letterbox,” Judge Burton R. Lifland of the United States Bankruptcy Court in the Southern District of New York denied the two Bear Stearns hedge funds Chapter 15 bankruptcy protection on Aug. 30.

Judge Lifland's terse terminology...
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