Obtaining Ch. 15 Provisional Relief Just Got Harder
July 26, 2013, 3:12 PM EDT
Law360, New York (July 26, 2013, 3:12 PM EDT) -- Unlike petitions filed under other chapters of the Bankruptcy Code, when a petition for recognition of a foreign proceeding is filed under Chapter 15, actions against the debtor and the debtor’s assets are not automatically stayed. Instead, between the date when the petition for recognition is filed and the date when the bankruptcy court grants recognition of the foreign proceeding, there is a gap period (which can be of several weeks’ duration).
If the foreign proceeding is recognized as a foreign main proceeding, the automatic stay...